Embed Size (px)
Citation preview
Right to Information Act,2005 (4 (1) (b)
INDUSTRIES DEPARTMENT.
Section 4(1)(b)(i)
TheParticularsoftheOrganisation,functionsandduties 1) Name of the Organization
DirectorateofIndustries, Andhra Pradesh
2) Address O/o DirectorofIndustries,A.P.
ChiragAliLane,Abids, Hyderabad500001.
3)Functions and Duties:
To Assist and guidethe entrepreneurs forpromotion and
settingup of industrial units.
To enable the entrepreneur to get different industrial
approvals and clearances from various departments /
agencies at a single point.
Sanction of incentives to eligible industrial undertaking.
To create a transparent, congenial, hassle-free and business
friendly environment for attractingmore investment for
accelerated growth of industrial sector in the State.
To arrange for allotment ofscarce raw materials likeCoal /
Rectified Spirit (RS) / DS to industrial units.
To arrange financial assistance to educated unemployed youth
from Banks to set up their firms under Prime Minister Employment
Generation Programme (self- employment scheme)
To provide marketingassistance to local industrial units.
To Rehabilitate Sick small industrial units.
To settle disputes arisingdue to non-receipt of payment to local SSI
suppliers from various purchasers especiallyGovernment
Departments by actingas arbitrator through the Industry
Facilitation Council.
Section 4 (1) (b) (ii)
Thepowersanddutiesofofficersandemployees
1. Functions of Director of Industries:
Overall Supervision ,Control andco-ordination on all the subjects for
smooth functioning of the Department. Offersuggestions/feed-back/Input tothe Government in formulation
ofIndustrial Policies relating to various subjects like Large and Medium Scale industries, infrastructure facilities, marketing incentives sanction and all issues relating to Industrial development in the state.
Attending to all administrative and statutory issues like Correspondence relatingto paycommission, finance commission etc.,Annual Administration Report, Legislature Committees and sub-Committees, Public Accounts Committee meetings and allthosesubjectswhicharenotspecificallyallottedtothAdditionalDirector.
. 2. Functions of Additional Director
He coordinate the activities of all the Joint Directors in the Head office as well as exercises control over the activities of the District Industries Centers (DICs) in the state. There are Five Posts of Joint Directors in the Head office with the following functions.
(1) Joint Director (GeneralAdministration) (2) Joint Director(MSME, Credit,Employment) (3) Joint Director (Incentives, Sub Plans) (4)Joint Director (DIC, Planning & Finance Single window)
(5) Joint Director(Infrastructure,SIPB)
3. Functions of other senior officers in centralOffice (1)Joint Director (General Administration)
Service matters of all the employees, both Gazetted and non-Gazetted
Office Management (Head Office)
Grievances, Citizen Charter,Public relations,
RTI, Attending representations received through CM Peshi
(2)Joint Director (MSME, Credit, Employment)
Issues relating to promotion of MSMEs like
Development of Clusters
Marketing, Purchase committees, R&D
Census, Data base
Industrial Facilitation
Revitalization of Sick Industries
Allotment of Scarce Raw materials
Industrial Cooperatives
Self employment schemes and all special schemes introduced by the both Central and State Governments from time to time
Relations with all financial Institutions and SLBC
(3)Joint Director (Incentives, Sub plans)
Sanction and disbursement of incentives to the Industries as per the GoAP Industrial Policy
Sanction and disbursement of incentives to the Industries as per the GoAP Industrial Policy under Sub plans to different Social classes
Audit paras
(4)Joint Director (DIC, Planning & Finance, Single window)
Issues relating to Coordination and Management of District Industries Centers(DIC)
DIC infrastructure
DIC inspections, Reports and Reviews of performance in Industrial development
Conferences, Seminars,Delegations, Workshops etc.
Entrepreneurial Development Programs
Exhibitions
Board meetings
Annual Action plans
Budget,Accounts
Issues pertaining to the Questions ,announcements etc. pertaining to State Legislature and Parliament of India
Single Desk policy and convergence committees
E-Governance
(5) Joint Director (Large Scale Industries, Mega Projects, Infrastructure, SIPB)
Industrial Potential Survey, Industrial development plans
Large Scale Industries and Mega Projects licenses, database, Escort services etc.
SIPB/SIPC, Partnership Summits etc.
Infrastructure
Industrial Corridors
Land alienation, Land conversion
Zonal regulations, Environmental laws, APPCB related matters
1. Functions of Accounts Officer
Paybills of officer of the Commissioner of Industries
Payfixations. Clarifications in respect of files referred. FBF/SIinterest calculations. L.S.C &P.C.
L.P.C. to all cadres in Commissionerate. Number Statements P.A.C. Meetings.
Budget releases under Plan &Non plan Schemes Reconciliation. Cash Transactions of office of the Commisioner of Industries TA Bills Contingent Bills. All loans and advances pertainingto Commissionerate&DICs. Pensions and Gratuityrelated issues pertainingto Commissionerate
and DICs. Accounts – Establishment. Gazetted officers payfixations. Audit of DIC offices Inspection of Accounts wingof DICs Audit Objections and related correspondence with Accountant
eneral.
Sections / Desks
1 Superintendent
Supervisingthestaffworkingin theparticularDesk. Processingof files put up bythe Assistants to the higher officers accordingto the rule position. 2 Senior Assistant/
Junior Assistant Receivingthe tappals and circulate the files to the Superintendent.
3 Special category stenographers
Attached to theDirector/Additional Director. He/ Shetakesdictations from theofficers and fair copythe same. Theyreceive the files from the officers concerned and return the files after perusal bythe officers .
4 SeniorStenographers JuniorStenographers /
Attached to theJoint Directors. They take dictations from the officers and fair copythe same. Theyreceive the files from the officers concerned and return the files afterscrutiny bytheofficers
5 Typists Fair copyingthe drafts approved bythe officers. 5. Functions of functionaries at District level
Functionsof GeneralManager:
Overall AdministrativeControl and Supervision of the District Industries Centres Public Relations aspects of the District Industries Centre
Responsible for overall coordination and Development of Micro,Small,Medium Enterprises and Large Scale industries in the district.
Review of the work done byall the Officers / Staff under his control Attending themeetings at District Level. Inspection of Large Industries, Mega Projects Convening District Industrial Promotion Committee(DIPC)
meetings to review Industrial clearances through Single Desk Policy, Sanctioning Incentives coming under the purview of the District
level committee, Scrutinizing the proposal for Raw material allotment, Self employment schemes etc.
Processingand recommendation of incentive applications to Head Office pertaining to State level Committee.
Functionsofotherofficersin DIC
After reorganisation of the Department, the Cadre Strength of DeputyDirectors/Assistant Directors attached to the various District Industries Centresis as per the followingpattern.
Districts Cadre
Strength Vizianagaram, Y.S.R.District, 1 DeputyDirector
2 Assistant Directors
Srikakulam, East Godavari, WestGodavari, Guntur, Krishna, Prakasham, SPSR Nellore, ChittoorAnantapuramu,Kurnool,
2 DeputyDirectors 2 Assistant Directors
Visakhapatnam 2 DeputyDirectors 3 Assistant Directors
FunctionsofDeputy Director/ Assistant Directorin DIC
The Deputy Director/ Assistant Director in DICs look after two types
activities, i.e (1) Functioning as AREA OFFICER to Supervise the activities
pertaining to a portion of the District (2) ) Functioning as SUBJECT OFFICER to
look after specific issues pertaining to different subjects of the Department.
As AREA OFFICERS , these officers are assisted by Two or Three
INDUSTRIAL PROMOTION OFFICERS
The Subjects allocated to these officers may change from District to
District as per the orders of the GM,DIC based on the importance/priorities
prevailing in the respective Districts.
The broad list of functions being looked after by these officers as
SUBJECT OFFICER are as follows.
Deputy Director (EI& I I)-Economic Investigation,
Informationand Infrastructure:
Dist. Action Plan Preparation
Industrial Potential Survey
Result Frame Document (RFD)
Partnership Summit
Incentives Database (General&SC/ST)
Database of Large Industries
consolidation of Incentives reports
Food Processing Industries ,Bio Technology etc.
EDPs/Campaigns/Workshops
LAQs/LCQs/LSQ/RSQ/PAC
Documentation and Guidance Cell in-charge
Census of SME ( Small Scale Industries) DeputyDirector (Credit)
PMEGP/Credit Plan/CGTMSE/Bank link schemes
Industrial Infrastructure upgradation scheme (IIUS)
Survey & Rehabilitation of Sick units.
DCC/JMLBC Meetings
DIC/SES/IFST loans recovery
Assistant. Director ( VI&T)- Village Industries & Training
DIPC Meetings – in-charge for conducting and submission of reports through GM, DIC
UdyogAdhar Memorandum
Single Desk Clearances
MSME Database
Cluster Development Programme (MSECDP)
Processing of Non-Polluting industries application (green category)
Pollution Public hearing /Taskforce committee meetings.
Survey & Rehabilitation of Sick units.
Campaigns/Workshops and other Training
Programs/EDPs
Assistant. Director (RM&M)- Raw Materials & Marketing
Maintenance of registers/master list of scarce & imported raw material /Database.,Marketing Assistance Scheme,Purchase Committee Meetings Hire Purchase Schemes of NSIC,Coop. Societies.
Functioning as DDO and looking after HR issues,House Keeping & Maintenance of Record Room
Citizen Charter
DIC Office Inspection
AG Auditt /Audit Paras
FunctionsofIndustrialPromotion Officer
He/ She looks after” cutting edge level” functions of all the activities pertaining to the department for a Block of about 2to 6Mandals depending upon the industrial activities intensity in the area.
The IPOs perform range of activities like
o Industrial PotentialitySurvey o Assisting the Entrepreneurs in selectingthe projects/ location
o Assisting the Entrepreneurs in obtaining required Industrial Clearences/Approvals
o Follow up with theBanks for obtaining sanctions/grounding for PMEGP and assist the Bankers in Recoveryof loans.
o Processingof Incentive applications. o Inspection of the units for Sanctioning various benefits to the
Industries like Incentives, Allottment of Scarce Raw Materials. o Periodical Inspection of the Industrial Units availing Incentives,
consumingscare Raw-materials. o Attending all MandalLevel Meetings.Attending work of
Exhibitions/Seminars etc. o Any othe work as entrusted by the higher officers from time to time.
The DICs are assisted by one Office Superintendent, two Senior Assistants, three Junior Assistants, Sr.Steno, Jr.Steno,Typist etc. from AP Ministerial Service.
Section 4 (1)(b) (iii)
ProceduresfollowedinDecisionmakingProcessincludingchannelsofSupervisionan
dAccountability:
AtCommissionerate/Directoratelevel,theDepartmentisheadedbyanOfficeroftherankofCommissioner/ Director ,which is a cadre post.He is assistedbyAdditionalDirector,5JointDirectors, 7Deputy Directors, 8AssistantDirectors/ 8 Industrial Promotion Officers and Ministerial Services. There is separate Accounts Wing with Officers and Staff on deputation from the Treasuries & Accounts Department.
Commissioner/DirectorofIndustriesisthefinaldecisionmakingauthority isrespectof sanctions and release of Funds, formulations of Programs, Schemes, Projects, answering theLAQS, sanction of incentives, Single-file correspondence and important correspondencewith Govt.ofA.P.andGovt.ofIndia.
At District level, General Manager (G.M.) (Joint Director Cadre Officer) is
the HeadoftheOfficeassistedby 1or2DDs,2or3ADs,IPOs.,CSR/Coop-Inspector, Office Superintendent andsupportingStaff. GeneralMangeristhefinaldecisionmakingauthorityat district level.
Section 4 (1)(b) (iv)
Normssetforthedischargeoffunction
B.RulesandTimeLimitsanddeemedProvision:
Single Desk Policy aims to create a one stop shop to provide all necessary clearances for starting and operating an industry, within 21 working days. The policy aims to eliminate the need to physically interact with regulatory authorities by providing for online filing and tracking of applications. It also allows payments to be made electronically to obtain timely approvals online.
Thetimelimitsforvarious approvals / clearances and
provisionordeemedapprovals havebeennotifiedvideG.O.Ms.No.35,Inds.& Com. (IP&INF) Deptt., dated 29-04-2015 and the details are indicated below.
Pre-Establishment Approvals/ Clearances
Sl
No. Name of the Clearance / Approval Department
Permissible Time
Limits
1
Power Feasibility certificate/sanction of power
supply
Power Connection
DISCOM-Department of Energy
7 days
To be based on
the length of the
HT line
2
Electrical Inspectorate statutory approval for
drawings
Chief Electrical Inspectorate-
Department of Energy
7 days
3
Building /Site Permission /Approval/License from
Municipality/ UDA/ DT&CP/
Department of Municipal
Administration & Urban
Development
7 days
4 Building /Site Permission from Gram Panchayat
Department of Panchayati Raj &
Rural Development
15 days / Deemed
5(i)
Approval for water supply from ULB s-MA & UD
Department
Water Connection
Department of Municipal
Administration & Urban
Department
7 days
21 days
5(ii)
Permission to draw water from river/public tanks,
Irrigation & CAD Department Permission to dig new
wells from Ground Water Department
Irrigation & CAD Department 15 days
6 Factory Plan Approval
Directorate of Factories-
Department of Labour
7 days
Employment Training and
Factories
7 Fire-No Objection Certificate
Directorate of Fire Services-
Department of Home
15 days
8 Registration for VAT, CST
Commercial Tax-Department of
Revenue
3 days
9
Consent for Establishment
a) Green Category
b) Orange Category
c) Red Category
APPCB
7 days
15 days
21 days
10
Approval of change of land use for Industrial
purpose
Land Administration-Department
of Revenue
If in Master Plan -
10 days
If not in Master
Plan – 21 days
11 Registration of Partnership Firms
Registration & Stamps-
Department of Revenue
3 days
12
License for manufacture of bulk drugs /
formulations / cosmetics
Drug Control Administration-
Department of Health, Medical &
Family Welfare
15 days
13
License for manufacture of ayurvedic, homeo,
siddha, unani
AYUSH-Department of Health,
Medical & Family Welfare
15 days
Pre-Operation Approvals/ Clearances
Sl
No. Name of the Clearance / Approval Department
Permissible Time
Limits
1
Final approval from Electrical
Inspectorate- Department of Energy-
Chief Electrical Inspector
Chief Electrical Inspectorate-Department
of Energy
7 days
2 Registration under Professional Tax Commercial Tax-Department of Revenue Spot approval
3 Factory Registration / licensing
Directorate of Factories-Department of
Labour Employment Training and
Factories
7 days / Deemed for
Registration only
4 Registration of shops & establishments Commissionerate of Labour -Department Spot approval
of Labour Employment Training and
Factories
5
Occupancy certificate from Fire Services
Department
Directorate of Fire Services-Department
of Home
15 days
6
Consent for Operation/ Authorization
a) Green Category
b) Orange Category
c) Red Category
d) Authorization of units handling
hazardous wastes
APPCB
7 days
15 days
21 days
Processed along with
CFO
7 Boiler registration
Directorate of Boilers-Department of
Labour Employment Training and
Factories
15 days
8(i)
Registration of establishments deploying
contractual workmen
Commissionerate of Labour -Department
of Labour Employment Training and
Factories
Spot approval
8(ii)
Registration of establishments deploying
inter-state migrant workmen
Commissionerate of Labour -Department
of Labour Employment Training and
Factories
Spot approval
9
Registration of plastic manufacturers /
recyclers
APPCB 15 days
10
License for storage of petroleum, diesel
and Naptha
District Collector/ Civil Supplies
Department
15 days
11
License for possession and use of
Rectified Spirit and Denatured Spirit
Prohibition & Excise Department of
Revenue
21 Days
NormssetfortheDischargeofFunctions
Norms / standards set bythe Industries Department for the Discharge of
important Function / Deliveryof Services areas follows:
Sl.No. NatureoftheService Servicedeliverytimeperiod 1 Project Ideas Across the table 2 UdyogAadhar
Memorandum for Micro/Small/Medium Enterprises
Onlinethrough website, www.udyogaadhar.gov.in
3 IL/ EOU * In respect of IL/ EOU permissions from Government of India, remarks to Government ofIndiawill be furnished within 10 working days from the date of receipt from Secretariat for Industrial Approval (SIA) New Delhi.
4 Clearances/ Approvals required to set up an industrial undertaking under Single Window Act
Single Desk Portal through www.apindustries.gov.in
5 Non- Pollution Acknowledgement for non-pollutingindustries.
DICs will issuetheAcknowledgement through Single Desk in www.apindustries.gov.in
Other Important Services 6 Credit Assistance
Financial Assistance under PMEGP
* Sponsoringthe applications to the Banks within two weeks bythe DICs after selection by the Task Force Committee.
7 Hire purchasingof Machinery
DICs will forward the applications to NSICwithin 7 workingdays
8 MarketingAssistance 1. Registration under SinglePoint Program (NSIC) 2. Registration underDGS&D
DICs will forward theapplications within 7workingdays to NSIC
9 ScarceRaw Material: 1. Coal
2. Rectified / Denatured spirit for new industrial units.
3. Rectified/ Denatured spirit for existing industiral&Molasses for existingunits.
* at district level (up to 100 MTs), the proposal will be recommended to SingareniColleries within 20 workingdays.* In case of above 100 MTs, the proposals will be recommended to Commissionerof Industries within 20 workingdays.* at State level ( above. 100 MTs ), the proposals will be recommended to Singarenicolleries within 15 workingdays after receipt of proposals from DICs. * DICs/ COIwill forward the applications for adhoc allotment to the competent authorities within 3 days through single window.
* DICs will reconnend the unit to Commissioner of Industries within 30 workingdays and which will be recommended to the concerned authorities within 15 workingdays.
10 State Govt. Incentives : The Details are as per G.O.Ms.No.108 Dated:14.11. 2015.Of theINDUSTRIES AND COMMERCE (P&I) DEPARTMENT and annexed herewith.
GOVERNMENT OF ANDHRA PRADESH INDUSTRIES AND COMMERCE (P&I) DEPARTMENT
Extract of of G.O.Ms.No.108 Dated:14.11. 2015.
Industrial Promotion – Incentives for the establishment of Industrial Enterprises in AndhraPradesh under the New/Expansion/Diversification categories within the framework of theIndustrial Development Policy (IDP) 2015-20 and the Sectoral Policies viz. Automobile &Automobile Components Policy 2015-2020, Textile & Apparel Policy 2015-2020,Biotechnology Policy 2015-2020, MSME Policy 2015-20, Aerospace &Defence ManufacturingPolicy 2015-2020 – Operational Guidelines for implementation ---------------------------------------------------------------------------------------------------------- 1.0. INTRODUCTION: To promote Andhra Pradesh as an attractive and competitive destination for industrialinvestments, the State Government have offered various incentives/benefits to all eligiblenew industrial enterprises set up in the State. Projects involving Expansion/Diversification ofexisting industries other than those specified in Annexure-I are also entitled for benefitsoffered under the policies mentioned below: a) Industrial Development Policy 2015-2020 b) Automobile & Automobile Components Policy 2015-2020 c) Textile & Apparel Policy 2015-2020 d) Biotechnology Policy-2015-2020 e) MSME Policy 2015-2020 f) Aerospace &Defence Manufacturing Policy 2015-2020 2.0. AREA OF OPERATION: The Scheme covers the projects which commence Commercial Production on or after1.04.2015 but on or before 31.03.2020 duly covering the whole of the State except theMunicipal Corporation limits of Vijayawada, Greater Visakhapatnam Municipal Corporationand Core Capital area of Capital Region Development Authority (CRDA) except the Zonesnotified as Industrial areas therein. However, the service activities set up across the Stateincluding all Municipal Corporation limits and the core capital of CRDA limits as appendedin Annexure–II are eligible only for investment subsidy and all other Service / Businessactivities are not eligible for any incentives set up anywhere in the State. 3.0 COMMENCEMENT AND DURATION OF THE POLICY: The Scheme will be in operation from 01.04.2015 to 31.03.2020 (inclusive of both dates),with such further modifications as may be brought about during the operation of thisscheme.
4.0. DEFINITIONS: 4.1.0 Industrial Development Policy (IDP) 2015-2020: G.O.Ms.No.36, Industries & Commerce (IP & INF) Department, dated: 29.04.2015. 4.1.1 Automobile & Automobile Components Policy 2015-2020: G.O.Ms.No.34, Industries & Commerce (IP & INF) Department,dated: 29-04-2015 and amendments issued thereon vide G.O. Ms. No.51, Ind. & Com.(P&I) Dept. Dt:17.07.2015. 4.1.2 Textile & Apparel Policy 2015-2020: G.O.Ms.No.32,Industries& Commerce (IP & INF) Department, Dated: 29-04-2015. 4.1.3 Biotechnology Policy 2015-2020: G.O.Ms.No.33, Industries & Commerce (IP & INF) Department, Dated: 29-04-2015. 4.1.4 MSME Policy 2015-2020: G.O.Ms.No.53 Industries & Commerce (IP & INF) Department, Dated: 23.07.2015. 4.1.5 Aerospace &Defence Manufacturing Policy 2015-2020: G.O.Ms.No.54 Industries & Commerce (IP & INF) Department, Dated: 23.07.2015. 4.2.0 Eligible Industrial Enterprise: Industrial Enterprise means any industrial undertakingand servicing Enterprise/Industry, other than those run departmentally by Government ofIndia / State Government or having equity of State Government / Govt. of India andother than those listed in Annexure-I. (List of Ineligible industries) 4.3.0 New Industrial Enterprise: New Industrial Enterprise means an Industrial Enterprisewhich has been established in the State with new machinery and commenced commercialproduction on or after 01.04.2015 and before 31.03.2020 (inclusive of both dates) holdingvalid approvals from the concerned authorities. Wherever the enterprise is not able toproduce the valid approvals, sanction will be given based on self-certification. However, disbursement of sanctioned incentives will only be made on submission ofvalid approvals. The Investment limits of 4.3.1 Micro Industries/Enterprises , 4.3.2 Small
Industries/Enterprises ,4.3.3 Medium Industries/Enterprises and 4.3.4 Large Industries/Enterprises are as defined by by Government of India from time to time. 4.3.5 Mega Projects: For General Industries under IDP 2015-20: Mega Project means the IndustrialEnterprise, set up with a capital investment of Rs. 500 crore and aboveOr
The Industrial Enterprise which creates direct employment to more than 2000 persons For Biotechnology Industries: Project with capital investment of Rs. 50 crore and Above or Creating local employment for 200 people, For Textile Industries: Projects with capital investment of Rs. 125 crore and above Or Providing employment to 2000 people or more, will be accorded mega industry status. Mega Integrated Automobile Project: The mega integrated automobile project will mean automobile projects that will have engine plant, press shop, body shop,transmission line, assembly line, paint shop etc. either on its own or as consortium or joint venture mode in the same location with investments over and above Rs.1500 croreand which will bring ancillary units of a minimum of Rs. 500 crore investment within 3years.
Ancillary status: This status will be accorded to Ancillary units of Mega Integrated Automobile Projects with minimum sales of 50% of their product to the mother unit orsupplying 100% requirement of the mother plant as certified by the mother plant, for 5years from the Date of commencement of Commercial Production (DCP), will be eligiblefor the incentives. Anchor unit for Aerospace &Defence (A & D) Industries: Global / Indian Original Equipment Manufacturers (OEM) companies which design and manufacture the A&Dplatform, where these are the high-end of the A&D value chain with large entry barriers,also requiring high investments and technological intensiveness for manufacturing inIndia. Hence, Standalone mother units with capital investment greater than Rs. 200 crorewith defence orders worth at least Rs. 50 crore or more would be designated as AnchorUnits. The definition of a defence order is a contract with the Ministry of Defence or theMinistry of Home Affairs (of Government of India) or their equivalents in foreigncountries.Capital Investment includes investment on land, buildings and plant and machinery and working capital margin. The incentives will be extended after investing the stipulatedinvestment as defined under Mega Project as on DCP. If the Mega Project is aided unit,the investment made during the period of 6 months from DCP will be considered incomputing the investment made by the Enterprise, for considering it as a Mega Project. All mega projects will be eligible for incentives under large industry category of variouspolicies and tailor made incentives over and above the policy on case to case basis maybe granted by Government. 4.4. Expansion Projects: Existing Industrial Enterprises, setting up expansion projects other than those listed in the ineligible list, involving enhancement of Fixed Capital Investment by at least 25% as well as enhancement of capacity by 25% for the same product lines will beeligible for incentives. 4.5. Diversification Projects: Existing Industrial Enterprises, making investment for a newproduct other than those listed in the ineligible list, involving Diversification with anenhancement at least of 25% of fixed capital investment as well as enhancement of turnoverby at least 25%, in value terms, (last three years average turnover) will be eligible forincentives. 4.6. Any Enterprise/Industry going for expansion/diversification, should submit the claimapplication separately subject to conditions stipulated at para No.4.4 and 4.5, otherwise theEnterprise/Industry will be treated as original Enterprise/Industry and theincentives/concessions will be considered from the DCP of the original Enterprise/Industry. 4.7. Fixed Capital Investment: Fixed Capital Investment means investment on land, building, plant, machinery & equipment assessed as per Para 8.0 of these guidelines. 4.8. Original Fixed Capital Investment: Investments made on fixed capital assets prior toExpansion/Diversification will be treated as Original Fixed Capital Investment. Whilecomputing this Original Fixed Capital Investment, neither depreciation nor revaluation willbe taken into account. Fixed assets include cost of land, civil works, plant, machinery andequipment as per the approved project cost. This project cost will also include cost ofmachinery installed within 6 months from DCP in case of units assisted by FinancialInstitutions.
4.9. Production Capacity of Original Enterprise/Industry: The highest annual production/turnover achieved during preceding three financial years prior to expansion/diversification, will be treated as Production Capacity of the Original Enterprise/Industry. In case of service enterprise the highest annual turnover achieved duringpreceding three financial years prior to expansion/diversification, will be treated asProduction Capacity of the Original Enterprise/Industry. 4.10. Tax: Tax means Tax paid to Commercial Tax Department by the way of net VAT and CST or State Goods and Services Tax (SGST) on goods produced by the Industrial Enterprise. 4.11. Date of Commencement of Commercial Production (DCP): The date on which commercial production has started, as indicated in the UAM/ EM Part – II /Part B of IEM/ILin respect of Micro, Small & Medium Enterprises and Large Industries respectively, as thecase may be and as confirmed and certified by General Manager, District Industries Center(GM, DIC). While confirming /certifying the DCP of the enterprise by GM, DIC as statedabove, due diligence is to be exercised by correlating date of purchase of machinery, date ofinstallation, power release and first sale bill, power bills, VAT payments, Excise dutypayment etc. In case of any dispute on DCP between the Enterprise and the Department, State Level Committee (SLC) will review and its decision is final. 4.12. Continuous Production: Continuous Production means continuous working of an Industrial Enterprise engaged in the activity of manufacture of approved lines for a minimum period of six (6) years for Micro and Small Enterprises (MSEs) and eight (8) years for Medium and Large Enterprises without any break in production. However, units under eligible service activities listed in Annexure –II shall be in continuous production for a period of three (3) years. If any Industrial Enterprise is not in operation/working for more than 90 days continuously, then the Industrial Enterprise shall be treated as break in production and not in continuous working. If break in production is condoned by SLC, the continuous production period will be extended accordingly. This condition is not applicable for seasonal Industrial Enterprises as defined by the Department. 4.13. Approved Project Cost: Approved Project Cost means, the cost of the project on different components as approved by the term loan lending institution or in case of joint financing, by the lead term loan lending institution. The component of working capital margin will not be considered for computing investment. In respect of self-financed projects, the Approved Project Cost will be fixed by the Multi Disciplinary Committee (MDC) for Micro, Small & Medium Enterprises (MSMEs). In case of self financed Large and Mega industries which have not availed any assistance from financing institutions, such projects shall be referred to Standing Scrutiny Committee (SSC) for inspection and report on the project cost i.e. land, building, plant & machinery and other assets. These figures shall be taken as Approved Project Cost. 4.14. Revised Project Cost: The Revised Project Cost for the self financed Industrial Enterprises should be taken as certified by the MDC for MSMEs and SSC for large and Mega industries.
4.15. Aided Enterprise/Industry: The Enterprise/Industry availing term loan from Scheduled Commercial Banks/Financial Institutions recognized by Reserve Bank of India, A.P. State Financial Corporation (APSFC) and Small Industrial Development Bank of India (SIDBI) for setting up the Enterprise/Industry is treated as Aided Enterprise/Industry. 4.16. Self Financed Enterprise / Industry: The Enterprise / Industries set up with own funds /unsecured loans. Units established first with own funds / unsecured loans and which have obtained term loan subsequently after commencement of production are treated as Self-Financed units for the purpose of sanction of incentives under the policy. Further, wherever, the Enterprises / Industry is established with term loan less than 40% of the project cost will also be considered as self-financed units and in these cases, the MDC / SSC should invariably co-opt the concerned financial institutions as the member in addition to the existing members in the respective committee. 4.17. BC Enterprise: An enterprise with 100% BC entrepreneurs belonging to BC Category as notified by the Government of Andhra Pradesh from time to time. 4.18. SC/ST Enterprise: An enterprise with 100% SC/ST entrepreneurs belonging to SC/ST Category as notified by the Government of Andhra Pradesh from time to time. All non-statutory concessions granted to S.C. (Hindus) by the State Government including economic support schemes sanctioned by A.P. Scheduled Castes Cooperative Finance Corporation have been extended to Scheduled Caste converts to Christianity and Buddhism as per orders issued in the G.O.Ms.No.341, Social Welfare (PR) Dept. dated 30.8.1977. 4.19. General Industries/Enterprises: The Industries/Enterprises which have not been covered under any sectoral policy or special category (SC/ST/BC). 4.20. Month: Calendar months. 4.21. Financial Year: 1st April to 31st March. 4.22. First Half Year: 1st April to 30th September 4.23. Second Half Year: 1st October to 31st March of next year 5.0. PROCEDURE FOR CLAIMING VARIOUS INCENTIVES OFFERED UNDER THE SCHEME: The entrepreneurs can avail incentives of State Government, Government of India, and Government of India Agencies. However, the quantum of incentives for a particular component under the Government of India and Government of Andhra Pradesh schemestogether shall be limited to 75% of the capital of that particular component. 5.1.0 Investment subsidy: 5.1.1 Prescribed application at Annexure – IV for investment subsidy within six months from the DCP, to the GM, DIC concerned. 5.1.2 The percentage of incentives with maximum admissible amount in Rupees lakhs are listed below.
General MSEs including Automobile, Biotechnology Industries a. General Category 15% - 20 lakhs maximum limit b. General Category-Women 25%- 30 lakhs maximum limit 2 Special Category MSEs including Automobile, Biotechnology Industries a. BC/SC/ST 35% --75 lakhs maximum limit b. BC/SC/ST-Women 45%-- 75 lakhs maximum limit c. ST Enterprises in Notified Areas 40%-- 75 lakhs maximum limit d. ST Enterprises set up by Women in Notified Areas 50% --75 lakhs maximum limit 3 Textile Industries (Garmenting & Apparel)[either investment subsidy or tax incentives ] Project cost upto Rs.10 Cr 20%--- 200 lakhs maximum limit Rs.10 Cr to 25 Cr 20%-- 300 lakhs maximum limit Rs.25 to 50 Cr 20%--400 lakhs maximum limit Rs.50 to 125 Cr 20%- 600 lakhs maximum limit Mega Textile Projects 10%- 1000 lakhs maximum limit 4 Financial assistance for Auto Clusters and Automotive Suppliers Manufacturing Centres (for buildings and common infrastructure) 50% ---2000 lakhs maximum limit 5 Aero space and Defence Anchor unit subsidy (limited to first 10 units in A.P) --- 1000 lakhs maximum limit R & D investments above Rs.10 crore on equipment subject to the fulfilling the criteria atpara 5.5.6 10% --1000 lakhs maximum limit Testing centre in Defence Parks 50%-- 2500 lakhs maximum limit Technology innovation centre in Defence Parks 50% ---3000 lakhs maximum limit Common facility centre in Defence Parks 50% --5000 lakhs maximum limit Eligible Service Activities on Equipment &Machinery General Category 15%-- 20 lakhs maximum limit General Category-Women 25%-- 30 lakhs maximum limit 5.1.3 . Investment subsidy shall also be applicable to all identified service activities related toindustries, setup anywhere in the State as per the list appended as Annexure – II.The total Investment Subsidy including the subsidies of State Government and Central Government together will be limited to 75% of the investment of a particular component taken into consideration. 5.1.4 Investment Subsidy shall be applicable to all eligible Expansion/Diversification Enterprises, subject to fulfilment of the conditions stipulated at para No. 4.4 or 4.5. 5.1.5 R&D investments in defence above Rs. 10 crore would be eligible for a 10% subsidy oninvestments subject to a maximum of Rs. 10 crore per investment, subject to fulfilling thefollowing order criteria within 2 years of the unit going live. i. The R&D centre should either have a direct order of at least Rs. 5 crore from the Ministryof Defence or should be providing services for a manufacturer which has a minimum ofRs. 50 croreorder from the Ministry of Defence.
ii. R&D exporters should have a minimum Rs. 10 crore order from a foreign government,aerospace and defence supplier for foreign government, civilian aerospace supplier or anMRO facility for defence or aerospace. iii. The application for this benefit shall be filed by the Enterprise within 6 months from theR & D centre going live after fulfilling the above criteria. However, the release shall bemade, after the unit executes the order. 5.1.6. In case of land and building purchased from existing Industry/Enterprise which has availed incentives, the land and building cost will not be considered as part of Fixed CapitalInvestment for computing Investment Subsidy. In case if the original unit has not availedincentives on land and building, the depreciated value of building (excluding land cost)will be considered as part of Fixed Capital Investment for computing Investment Subsidy. A certificate on the depreciated value of building and quality & life of the building by CivilEngineer are to be submitted along with the application. 5.2.0 Reimbursement of Stamp duty, Transfer duty, Mortgage & Hypothecation duty: 100% Stamp duty and Transfer duty paid by the Industry on purchase of land/shed/building meant for industrial ,100% Stamp duty for lease of land/shed/buildings and also mortgages and hypothecation deeds will be reimbursed. Stamp duty will be reimbursed only one time on the land/building/shed and subsequent transactions will not be eligible for stamp duty reimbursement even in case of land purchases in open auction conducted by financial institution. Stamp duty on Mortgages and hypothecations paid by an Enterprise for availing termloan from the financial institutions on assessed Fixed Capital Investment only wouldbe eligible. This facility is not applicable on working capital. If the mortgage deed isregistered in any state other than Andhra Pradesh in favour of any financial institution, then, this facility will not be extended. 5.3.0 Reimbursement of land cost in Industrial Estates/Industrial Development Authority/Industrial Parks (IE/IDA/IPs): 25% of land cost limited to Rs.10.00 Lakh will be reimbursed to the Industrial Enterprises located in IE/IDA/IPs for General Category. In case of BC & SC/ST Enterprises, reimbursement will be 50 % limited to Rs.20.00 lakh. The above benefit shall be provided on land directly purchased from APIIC only. 5.4.0 Reimbursement of land conversion charges: 25% land conversion charges from agriculture use to industrial use, limited to Rs.10.00 lakh will be reimbursed to MSMEs. All eligible Enterprises shall submit their claims in the prescribed application formgiven at Annexure- V for reimbursement of of incentives mentioned above within sixmonths from the DCP, to the concerned GM, DIC. These reimbursements shall be applicable to all eligible (a) New MSMEs and also (b) Expansion/Diversification of MSMEs, subject to fulfilment of the conditions stipulated at para No. 4.4 or 4.5. All the above incentives shall be admissible to eligible Enterprises on the land area up to five times of the plinth area of the factory building constructed. However, in respectof industries where the open land requirements would be larger due to the
specificnature of industry, SLC may consider allowing land in excess of five times plintharea on case to case basis. In respect of MSMES, decision of DIPC will be considered where the open land requirement will be larger due to specific nature of Industry. 5.5.0 Reimbursement of Tax: 5.5.1 All eligible Industrial Enterprises shall submit their claims in the prescribed application form given at Annexure – VI for reimbursement of VAT/CST/SGST within six months after completion of the financial year i.e. on or before 30th September along with required documents mentioned in the Application as per check slip, to the concerned GM, DIC. 5.5.2 Eligible VAT/CST/SGST reimbursement for various categories is as given below. General Industries including Aerospace &Defence and Biotechnology Industries a. Micro and Small 100% - 5 years b. Medium 75% - 7 years upto 100% of the capital c. Large 50% - 7 years upto 100% of the capital 2 Textile Industries
a. Net VAT/CST/SGST on Intermediate / End Product b. VAT/CST/SGST Raw Material / Intermediate Product 100% - 5 years upto 100% of machinery value 3 Mega Integrated Automobile Projects
a. CST 100% - 10 years GST regime b. Gross VAT/SGST 100% --20 tears- 150% of the capital c. VAT/SGST on Raw material/inputs/capital goods in excess of 5% **- 20 years d. Input credit as per para 5.8.1 100% --20 years 4 Ancillary units of Mega Integrated Automobile Projects (VAT/CST/SGST) 75%-- 7 years upto 100% of the capital 5 Maintenance/Repairs/Overhaul (MRO) of Air crafts
VAT/CST/SGST reimbursement on input materials 100% -- 5 years- ** For Integrated Automobile Projects - VAT/SGST on raw material/inputs/capital goods will be reimbursed over and above 5% to ensure that the unit pays max 5% on all inputs. 5.5.3 The above incentive shall be applicable to all eligible (a) New Industrial Enterprises and (b) Expansion/Diversification projects, subject to fulfilment of the conditions stipulated atPara No. 4.4 or 4.5. 5.5.4 The Expansion/Diversification projects will be allowed for reimbursement on VAT/CST or State Goods and Services Tax (SGST) paid on production made over and above the base annual production capacity of the original Enterprise/Industry i.e. before expansion/diversification. The base annual production is either the average annual production ofprevious three financial years or 75% of installed capacity of the original IndustrialEnterprise, whichever is higher in case of manufacturing single product (as certified byFinancial Institution/ Chartered
Accountant). If the Enterprise/Industry takes upexpansion/diversification in the same year, the base capacity will be calculated proportionately. In case of multi products, the average annual sales turnover of previousthree financial years will be taken as base turnover (as certified by Chartered Accountant). 5.5.5 The Enterprise/Industry shall obtain the details of the net VAT /CST/SGST paid during the year for which the claim is being made duly certified by Commercial Tax authorities in the form prescribed at Form-A for original/expansion/diversification Enterprise/Industryseparately as the case may be. The GM, DIC or the inspecting officer shall certify that theTax paid relates to sale of actual production/ manufacturing but not trading. 5.5.6 Textiles i. Input Tax: a) Input Tax on raw material/intermediate product will be reimbursed, wherever the Commercial Taxes department is not reimbursing the Input Tax, in respect of certainproducts under exempted category of A.P VAT Act 2005. b) Input tax will also be reimbursed in case the input tax paid is more than output tax. Insuch cases the differential amount (Input tax – output tax) will be reimbursed. c) Input tax related to exports will not be reimbursed, as the Commercial Tax Departmentwill refund such taxes as per A.P.VAT Act, 2005. d) The Enterprise/Industry shall obtain the details of the Input Tax paid on the raw material/intermediate product as per Para No. 5.8.1 (a) and (b) during the year for whichthe claim is being made duly certified by Commercial Tax authorities in form prescribedat Form-AA for original/expansion/diversification Enterprise/Industry separately as thecase may be.The input tax reimbursement should pertain to the manufacturing enterprise that has applied for incentives and it should not include any Input Tax pertaining to their groupcompanies / dealers. ii. Tax on end product/intermediate product The Enterprise/Industry shall obtain the details of the net VAT/CST/SGST paid on theend product / intermediate product during the year for which the claim is being madeduly certified by Commercial Tax authorities in form prescribed at Form-A for original/expansion /diversification Enterprise/Industry. 5.6.0 Reimbursement of power consumption charges: 5.6.1 All eligible industries shall submit their claims in the prescribed application form given at Annexure - VII for reimbursement of power cost within six months after completion ofevery half-year i.e., by 31st of March for first half-year and 30th of September for secondhalf-year along with the documents mentioned in the application to the GM, DIC on half yearly basis. 5.5.3 The above incentive shall be applicable to all eligible (a) New Industrial Enterprises and(b) Expansion/Diversification projects, subject to fulfilment of the conditions stipulated atPara No. 4.4 or 4.5. 5.5.4 The Expansion/Diversification projects will be allowed for reimbursement on VAT/CST or State Goods and Services Tax (SGST) paid on production made over and above the base annual production capacity of the original Enterprise/Industry i.e. before expansion/diversification. The base annual production is either the average annual production ofprevious three financial years or 75% of installed capacity of the original IndustrialEnterprise, whichever is higher in case of manufacturing single product (as certified byFinancial Institution/ Chartered Accountant). If the Enterprise/Industry takes upexpansion/diversification in the
same year, the base capacity will be calculatedproportionately. In case of multi products, the average annual sales turnover of previousthree financial years will be taken as base turnover (as certified by Chartered Accountant). 5.5.5 The Enterprise/Industry shall obtain the details of the net VAT /CST/SGST paid during the year for which the claim is being made duly certified by Commercial Tax authorities in the form prescribed at Form-A for original/expansion/diversification Enterprise/Industryseparately as the case may be. The GM, DIC or the inspecting officer shall certify that theTax paid relates to sale of actual production/ manufacturing but not trading. 5.5.6 Textiles i. Input Tax: a) Input Tax on raw material/intermediate product will be reimbursed, wherever the Commercial Taxes department is not reimbursing the Input Tax, in respect of certainproducts under exempted category of A.P VAT Act 2005. b) Input tax will also be reimbursed in case the input tax paid is more than output tax. Insuch cases the differential amount (Input tax – output tax) will be reimbursed. c) Input tax related to exports will not be reimbursed, as the Commercial Tax Departmentwill refund such taxes as per A.P.VAT Act, 2005. d) The Enterprise/Industry shall obtain the details of the Input Tax paid on the raw material/intermediate product as per Para No. 5.8.1 (a) and (b) during the year for whichthe claim is being made duly certified by Commercial Tax authorities in form prescribedat Form-AA for original/expansion/diversification Enterprise/Industry separately as thecase may be. The input tax reimbursement should pertain to the manufacturing enterprise that has applied for incentives and it should not include any Input Tax pertaining to their groupcompanies / dealers. ii. Tax on end product/intermediate product The Enterprise/Industry shall obtain the details of the net VAT/CST/SGST paid on theend product / intermediate product during the year for which the claim is being madeduly certified by Commercial Tax authorities in form prescribed at Form-A for original/expansion /diversification Enterprise/Industry. 5.6.0 Reimbursement of power consumption charges: 5.6.1 All eligible industries shall submit their claims in the prescribed application form given at Annexure - VII for reimbursement of power cost within six months after completion ofevery half-year i.e., by 31st of March for first half-year and 30th of September for secondhalf-year along with the documents mentioned in the application to the GM, DIC on half yearly basis. 5.6.2. The quantum of power cost reimbursement per unit for various sectors is as tabulatedbelow. S. No. Sector/Category Reimbursement of Power cost per unit in Rs. 1 a. General Industries b. Automobile & Auto components Industries c. Defence& Aerospace Industries and d. Textile units(Modern Ginning &Spinning) Reimbursement of Power cost per unit in Rs. 1.00 2 a. Industries Promoted by BC/SC/ST Entrepreneurs b. Other Textile enterprises (Weaving,Processing, Garmenting, composite units, Technical Textiles etc.) c. Biotechnology Industries Reimbursement of Power cost per unit in Rs. 1.50
5.6.3 All eligible industries will be reimbursed power cost as per the para No. 5.4.2 for a period of 5 years from the DCP. The tariff prevailing on 01.04.2015 will be taken as base rate and in case of any decrease in power tariff, the reimbursement will be reduced proportionately. 5.6.4 This reimbursement is only on the energy consumption (charges for number of unitsconsumed only but not on Contract Maximum Demand (CMD) or any other charges leviedby DISCOMs. Residential & colony power consumption is not eligible for reimbursementof power cost). 5.6.5 The reimbursement of power cost shall be applicable to all eligible (a) New IndustrialEnterprises and (b) Expansion/Diversification Projects, subject to fulfilment of theconditions stipulated at para No. 4.4 or 4.5. 5.6.6 The power cost reimbursement shall be applicable to the Industrial Enterprises, which are utilizing power from DISCOMs and Rural Electrical Companies (RECs). However, power connection should be in the name of the Enterprise/Industry. In case of textile units, power purchased through open access is also eligible for reimbursement. 5.6.7 Reimbursement of power cost will be allowed in case of expansion/ diversification projects over and above base power consumed. For the purpose of reimbursement, annual power consumption will be taken into account. The reimbursement will be made every six (6)months, but in case actual power consumed during the year is less than annual baseconsumption, reimbursement made during any previous period will be adjusted in futurereimbursement. If excess is paid and could not be adjusted in future claims, it will berecovered under Revenue Recovery Act. 5.6.8 The base annual consumption will be either average annual power consumption of previous three financial years of the expansion / diversification project as certified by Chartered Accountant or power consumption for 75% of connected power load of the originalIndustrial Enterprise, whichever is higher. Power consumed over and above the baseconsumption will be eligible for reimbursement of power cost. If the Enterprise /Industryhas taken up expansion/diversification in the same year, the base power consumption willbe calculated proportionately. In case Industry/Enterprise purchases second hand land and building along with powereither on lease or outright sale, the unit will not be entitled for any power cost reimbursement if the power connection is in the original Industry/Enterprise name. However, if the Industry/Enterprise transfers the power connection in the name of thepresent enterprise they are entitled for power cost reimbursement provided they install thenew plant and machinery. 5.6.9 All textile units commissioned during Industrial Investment Promotion Policy 2010-15period that have opted for incentives under Textile Policy 2015-2020 will be reimbursedpower cost as per para 5.4.2 for the remaining five year eligibility period 5.7.0 Reimbursement of Interest Subsidy. 5.7.1 All eligible Industrial Enterprises shall submit their claims in the prescribed applicationform given at Annexure - VIII for reimbursement of interest within six months aftercompletion of every half-year i.e., last date for filing claim application is 31st of March forfirst half-year and 30th of September for second half-year along with the documentsmentioned in the application to the concerned GM, DIC. 5.7.2 The quantum of Interest Subsidy for different categories and sectors is given below.
1 General Industries including Automobile, Aerospace and Defence,
Biotechnology (MSEs) 9% (max) upto 5years 2 MSME Biotech Industries (on capital equipment necessary for technology up gradation) 3 Rs. 3 lakh per year upto 5years 3 Textile Industries Weaving (with or without preparatory), Dyeing & Processing, Knitting,Garment/Made-ups Machine Carpeting, Machine Embroidery, technical textiles and anyother activities/process like crimping, texturizing, twisting, winding, sizing etc. within the Textile value chain. 8% upto 7 years- This facility will be applicable to the units already covered under TUF scheme of GoI and on the investment in new & modern Plant & Machinery (covered under TUF) Spinning and Modern Ginning 7.5% upto 7 years 5.7.3 This facility shall be applicable on the term loan availed on Eligible Fixed Capital Investment by all eligible Enterprises. This facility is also applicable for expansion/diversification projects. 5.7.4 The new/expansion/diversification enterprises availing term loan from Scheduled Commercial Banks / Financial Institutions/Cooperative Banks/RRB recognized by ReserveBank of India, APSFC and Small SIDBI only are eligible under this scheme. 5.7.5 The Interest amount paid by the eligible new /expansion/diversification Enterprises on the term loan availed will be reimbursed as per the limit indicated in para 5.11.2 on half yearly basis. This benefit in case of general MSEs will be available for a period of five (5) years from the DCP i.e. up to the 1st half of 6th year or till the closure of the term loan account, whichever is earlier. In case of Textile Industries, the facility will be available for a period of seven (7) years which includes 2 years moratorium period from the DCP or till theclosure of the term loan whichever is earlier. 5.7.6 For the purpose of Interest Subsidy, the rate of interest actually charged will be taken as the applicable rate of interest. a) In case of general MSEs, minimum 3% interest per annum should be borne by the Enterprise. Over and above 3% interest per annum, reimbursement will be done to theextent of maximum 9%. Wherever the investment in plant and machinery is more than Rs.5.00 crore for a Small Enterprise, then the computed cost of the machinery as perGovernment of India norms will be taken into account for providing the Interest Subsidy. b) In case of textiles, Interest Subsidy provided by Government after taking into account theassistance from all sources, (Centrally Sponsored TUF scheme, Industrial Policy of thestate etc.) shall be capped at 12.5% per annum in a way that maximum Interest Subsidyprovided by Government will be up to 8% per annum for Weaving (with or withoutpreparatory), Dyeing & Processing, Knitting, Garment/Made-ups Machine Carpeting,Machine Embroidery, Technical Textiles and any other activities/process like crimping,texturizing, twisting, winding, sizing etc. within the textile value chain and up to 7.5% forSpinning & Modern Ginning. Textile Industries availing Interest Subsidy under TUF onlyare eligible for this benefit. 5.7.7 The sanctioned term loan disbursed within six months in case of general industries and one year in case of textile industries, from the DCP has to be part and parcel of original termloan sanctioned. The subsequent term loans sanctioned are not eligible under the scheme.
5.7.8 This reimbursement to the Enterprise/Industry shall not include penal interest, liquidated damages etc. paid to the financial institutions / banks. 5.7.9 The interest reimbursement will be made in proportion to the interest paid against the total interest to be paid in the given period of six months. 5.7.10 The loan accounts that are classified as overdue in the books of the bank at the time ofhalf- yearly closing and those classified as Non-performing Assets at year-end areineligible. However, if they resume on-time repayments and regularize the arrears, they areeligible for the incentives in the next half-year period. For this purpose the banker has tocertify that the repayment is regular and the account is standard and the same is to beenclosed along with claim application. In case the accounts are regularised, the units willbe given this benefit for the period for which the accounts are regularised along with theregular claim excluding penal interest. 5.7.11 All textile units commissioned during Industrial Investment Promotion Policy 2010-15period and that have opted for the benefits accorded under this policy for the remainder ofthe five year eligibility period will be eligible for interest subsidy for the remainingeligibility period under this policy. 5.8.0 Seed Capital Assistance: 5.8.1 All eligible Industrial Enterprises shall submit their claims in the prescribed applicationform given at Annexure – IX for Seed Capital Assistance within six months from the dateof sanction of term loan by the financial institution, to the concerned GM, DIC. 5.8.2 The Seed capital assistance to First Generation Entrepreneurs to set-up Micro Enterprises @10% of the Plant & Machinery cost for General Category, 15% for Women and 25% for BC/SC/STs will be paid and the same will be deducted from the eligible Investment Subsidy. 5.8.3 This facility shall be applicable to new Micro Enterprises only. This facility is not applicable for expansion/diversification, since the assistance is mainly meant for the First Generation Entrepreneurs. 5.9.0 Reimbursement of expenses incurred for Quality Certification/Patent egistration: 5.9.1 All eligible Industrial Enterprises shall submit their claims in the prescribed applicationform given at Annexure - X for reimbursement of the expenses incurred for QualityCertification within six months from the date of obtaining Quality Certification along withrequired documents mentioned in Application, to the concerned GM, DIC. 5.9.2 The quantum of subsidy Assistance for Quality Certification/
Patent Registration/Trademark for different categories and sectors is as given below. 1. General MSMEs On Quality Certification/ Patent Registration: 75% limited to Rs. 5.00 lakh On Trademark: 50% limited to Rs. 25,000 2. MSEs set up by BC Entrepreneurs 50% limited to Rs. 3.00 lakh 3. MSEs set up by SC/ST Entrepreneurs 100% limited to Rs. 3.00 lakh 4. Automobile & Auto components MSMEs On Patent Registration: 75% limited to Rs.25 lakh. On Quality Certification: 50% limited to Rs.5 lakhs. 5 Biotechnology Industries On Patent Registration: 75% limited to Rs.25 lakh. 6 Aerospace &Defence MSMEs On Quality Certification: 50% limited to Rs. 5 lakh On Patent Registration: 75% limited to Rs. 25 lakh
5.9.3 This facility is available to all eligible Industries/Enterprises obtaining Quality Certification from BIS/ISO/HACCP/other national/international certification agencies. 5.9.4 The facilities are exclusive of any other Quality Certification expenses reimbursed by GoI like for MSMEs or under any other scheme. 5.10 Incentives for Swachh Andhra
5.10.1 All eligible Industrial Enterprises shall submit their claims in the prescribed application form given at Annexure - XI for subsidy on specific cleaner production measures within six months from the DCP along with required documents mentioned in Application, to the concerned GM, DIC. 5.10.2 GoAP will provide 35% subsidy on cost of plant & machinery for specific cleanerproduction measures limited to Rs. 35 lakhs for MSMEs and 10% subsidy on cost of plant &machinery on specific cleaner production measures limited to Rs. 35 lakhs for Large Enterprises,provided the measures are certified by Andhra Pradesh Pollution Control Board (APPCB). 5.10.3 GoAP will provide 25% subsidy of total Fixed Capital Investment of the project (excluding cost of land, land development, preliminary and pre-operative expenses andconsultancy fees) for below mentioned green measures with a ceiling of Rs. 50 crore for all types of industries. a) Waste water treatment: Constructing effluent treatment plant and sewage treatmentplant and using recycled water for industrial purposes especially zero dischargesystems. b) Green Buildings: Buildings which obtain green rating under the Indian Green Building Council (IGBC/LEED Certification) or Green Rating for Integrated Habitat Assessment (GRIHA) systems. c) Use of renewable source of power for captive consumption (solar, wind and biomass plants etc.) d) Installing Continuous Emission Monitoring System (CEMS) for red category industries. The information should be disseminated continuously to APPCB. e) Adopting rain water harvesting; restoring water bodies by de-silting defunct water bodies. f) Any other environment management project approved by Empowered Committee ofSecretaries. 5.10.4 This facility shall be applicable to all new/existing projects. The subsidy will be limited to the extent of power utilised for captive consumption only and capacity over and above the captive consumption will not be considered for capital subsidy. 5.11.0 Reimbursement of cost involved in skill upgradation and training:
5.11.1 All eligible Industrial Enterprises shall submit their claims in the prescribed application form given at Annexure - XII for reimbursement of cost involved in skill up gradation and training the local manpower within six months after completion of such training programme along with required documents mentioned in application, to the concerned GM, DIC. 5.11.2 The quantum of reimbursement for skill up-gradation and training in different categories and sectors is given below. i.e. % of training cost to be reimbursed Limit (in Rs. per persons) and No. of persons allowed 1 General, MSMEs
Micro Enterprises 50% Rs.5,000/- per person up to 10 persons SMEs 50% Rs.5,000/- per person up to 20 persons
2 SC/ST/BC enterprises 50% Rs.5,000/- per person . No Limit on number of persons 3 Aerospace &Defence (in plant training) 50% Rs.10,000/- per month for one year Up to 50 persons. 4 Textiles
For Trainers 100% (in autonomous institutions promoted by Government/Public Sector Undertakings) 50% (in other institutions) @ Rs.7,500/- per person per week for a max.of 4 weeks and there is nolimit on number of persons. For Trainees in power looms Rs. 3,000/- per person per month for a max.of 3 months For apparel Trainees 50% @ Rs.7,500/- per person for 15 working days (120 hrs) per course For Women apparel Trainees 60% @ Rs.8,000/- for 15working days (120 hrs) per course 5.11.3 The eligible Enterprises/Industries have to inform the concerned GM, DIC well in advance of the commencement of training programme. The GM, DIC shall monitor the skill development training programme. 5.11.4 The Enterprise/Industry should submit the list of employees trained along with theirappointment letters duly certified by the promoter. 5.11.5 The training should be more practical oriented rather than purely theoretical one. 5.11.6 This facility should be utilized for training the local manpower so that the local manpower will be readily suitable for employment. 5.11.7 The training should be aimed at upgradation of skill, which should be useful to theorganisation. 5.11.8 Textile industry: Training Institution for Apparel and textile designing Any autonomous institution promoted by Government/Public Sector Undertakings or privatesector with a substantive background of textile and apparel industries or skilled manpowerdevelopment, that proposing to set up a training institution for apparel and textile designing shall file an application with GM, DIC, duly enclosing the detailed project report, background note and documents related to credit worthiness of the promoter. G.M, DIC will discuss the proposal in detail in DIPC meeting and forward the proposal to theCommissionerate of Industries with the specific recommendation. All such proposals will beplaced before the State Investment Promotion Board (SIPB). The selected proposal will beprovided the following incentives subject to complying with the laid down criteria. a) Financial assistance up to 75% of the project cost subject to a maximum amount of Rs. 4crore. b) Project cost will cover Fixed Capital Investment in building, equipment and machinery(including installation cost), electrification, furniture and other miscellaneous investmentrequired for setting up training facilities, excluding land cost. A maximum of 25% cost ofmachinery and training equipment will be eligible to be considered under infrastructureincluding building.
c) The promoter will bear the recurring expenditure of running the Training Institution. Training Centres: Any Training Centre intending to set up a new Training Centre or upgradetheir existing facilities for apparel training shall file an application with General Manager, District Industries Centre, duly enclosing the detailed project report and the details of theexisting training facility. G.M, DIC will discuss the proposal in detail in DIPC meeting and forward the proposal to theCommissionerate of Industries with the specific recommendation. All such proposals will beplaced before the SLC for approval. The selected proposal will be provided the followingincentives subject to complying with the laid down criteria. a) 50% of their investment towards purchase of equipment and machinery (including installation cost), electrification and necessary furniture subject to a maximum amount ofRs. 20 lakh per centre. b) New Training Centres will also qualify for this financial assistance. c) To be eligible for the above benefit, the Institution/Training centre shall create a mechanism for assessment of trainees either along the lines of ITIs and Polytechnics or undergo third party assessment by certified industry bodies. All such Training Centres shall be in continuous operation for a minimum period of 5 years. 5.12 Marketing incentives All eligible industrial Enterprises/ Associations shall submit their claims in the prescribedapplication form given at Annexure - XIII for reimbursement of the expenses incurred forparticipation in international trade fairs within six months from the date of participation inthe trade fair along with required documents mentioned in the Application, to the GM, DICconcerned. Sector wise Assistance for participation in the international trade fairs/ Market Studies is given below. 1. MSMEs of Aerospace &Defence and Automobile & Auto components sectors 50% limited to Rs. 5 lakh for first 10 units per year. 2. Assistance for Industrial Associations Financial assistance to MSME associations for funding market studies, market creation efforts, quality improvement effort and disseminating this information to MSMEs on case to case basis, as decided by the SLC. 5.13. Reimbursement of Transportation charges: 5.13.1 All eligible industrial Enterprises shall submit their claims in the prescribed application form given at Annexure - XIV for reimbursement of Transportation charges within six months from the date of actual expenditure/contract along with documents mentioned in Application, to the GM, DIC concerned. 5.13.2 Transport subsidy to labour intensive Apparel units: Labour intensive Apparel units are considered for provision of transport subsidy limited to first two years of operations of units providing direct employment to at least 1000 people in backward districts of Rayalaseema and North Coastal Andhra. The incentive will be subject to a maximum of Rs 500 per employee per month or Rs. 3 lakh per year
whichever is less, reimbursed on an annual basis. The DIPC will scrutinise and sanction the benefit. 5.13.3 The logistics cost to transport aerospace and defence Products from the designatedlogistics parks, FTWZs, ports located in Andhra Pradesh to the defence manufacturing facility in Andhra Pradesh will be reimbursed for project cargo whose insurable value is greater than Rs. 1 crore for an order executed for the Ministry of Defence or Ministry of Home Affairs, Government of India or its foreign equivalents by an anchor unit. 5.13.4 The reimbursement would be for materials, components and equipment which are usedfor a project whose contract value should be greater than Rs. 50 crore and the reimbursementwould be capped at a maximum of Rs. 1 crore per contract. 5.13.4 Reimbursement can be given only once for any particular contract. 5.14. Special Incentives for Biotechnology Units: 5.14.1 Technology Acquisition and Development Fund: GoAP would create a TechnologyAcquisition and Development Fund of Rs. 2 crore to meet the expenditure incurred for acquiring high impact patented technologies.
The applicant shall apply to the GM, DIC within 6 months from the date of patent acquisitionfrom the patent holder. GM, DIC will discuss the proposal in detail in DIPC meeting and ifrequired takes the inputs from A.P. Biotechnology Committee (APBC). 5.14.2 Research & Development: In order to promote innovation and applied R&D in theresearch & academic institutions, the Government of Andhra Pradesh proposes to offer special incentives for organizations engaged in applied research and development activitiesencompassing the following: a) Co-financing of industry sponsored research: Matching contribution of up to Rs. 25lakh will be provided for biotech related projects of public importance where an equalamount has been funded by private/public sector companies. The research outcomes willbe reviewed by APBC envisaged in the Biotechnology Policy 2015-20. b) Collaborative Research Grant: Financial assistance up to Rs. 25 lakh per project perannum towards covering scientist and technician cost for market-driven product development by scientists from at least three A.P. based research institutions and/or academic institutions. c) Attracting Global Talent: To attract global talent for conducting breakthrough researchin the State, the Government proposes “YellapragadaSubbarao Life Sciences Scholarship”. The objective is to incentivize joint research programs of A.P based institutions with researchers pursuing post-doctoral India-specific life sciences research in top 100 global institutes/universities. Financial support not exceeding Rs. 5 lakh for a period of 6 months limited to 10 researchers per annum. The scheme will also be applicable to scientists interested in sabbatical research work. The applicant shall apply to the GM, DIC within 6 months from the date of going live of the any of the above applied R&D Activities. GM, DIC will place the proposal in DIPC for sanction of incentives. 5.15 INDUSTRIAL PARKS 5.15.1 Textile Park
5.15.1.1 The applicants intending to set up Textile Park shall file an application with GM, DIC, duly enclosing the detailed project report and documents related to creditworthiness of the promoter as appraised by the financial institution. 5.15.1.2 GM, DIC will discuss the proposal in detail in the DIPC meeting and forward theproposal to the Commissionerate of Industries with the specific recommendation. All suchproposals will be placed before the SIPB. The selected proposal will be provided the following incentives subject to complying with the laid down criteria. 5.15.1.3 GoAP will provide financial assistance for creation of common infrastructure facilities in textile/composite/integrated park of up to 10% of the total project cost (excluding cost of land) as indicated below, subject to condition that a minimum of 10 manufacturing/service enterprises be accommodated: a. 50% of expenditure incurred for establishing common infrastructure facilities with maximum limit of Rs. 15 crore for textile parks. b. 50% of expenditure incurred for establishing common infrastructure facilities with a maximum of Rs. 30 crore for composite/integrated textile parks. 5.15.1.4 The financial support will be given in a phased manner in proportion to the investment made by the promoter and physical progress achieved, as decided by the SIPB. 5.15.2 Mega Life Science Park at Visakhapatnam 5.15.2.1 GoAP is keen in promoting a Mega Life Sciences park in Visakhapatnam with multitenanted lab facilities, common testing facilities, incubation and skill training centres in PPP mode. APIIC will come out with suitable mechanism for inviting applications and the operational guidelines will be issued separately. 5.15.2.2 The selected promoter of the Park will be provided with the following incentives subject to the condition that the Park shall have a plug and play lab space (minimum 50,000 square feet) a) Land will be provided on a lease basis or given as part of equity b) Financial assistance up to 50% of cost of infrastructure for critical external infrastructure facilities like roads, power, water, waste management and testing facilities etc. up to Rs.15 crore c) 25% Reimbursement on lease rentals for plug-and-play lab space up to 5,000 sq. ft., leased by Life Sciences start-ups limited to Rs. 5 lakh per annum for 3 years 6.0. Guidelines for SCSP/TSP schemes and B.C. Entrepreneurs 6.1.1. These provisions are applicable for MSEs set up by SC and ST entrepreneurs. 6.1.2 There should be 100% ownership by SC/ST entrepreneurs or both together in case of aJoint Venture Enterprise as per G.O.Ms.No.105, Inds. &Comm (IP & INF) Dept., dated: 23.04.2008. Wherever SC/ST entrepreneurs join together and form a joint venture, the incentives will be determined basing on majority holding by SC/ST promoters. Such combination should continue for at least six (6) years from the DCP, failing which the special incentives allowed to Scheduled Caste/Scheduled Tribe entrepreneurs, will be recovered and action will be initiated as per provisions stipulated in para 29 of these guidelines. In this regard, the GM, DIC shall monitor the progress of these Enterprises andsubmit report to the Commissioner of Industries on quarterly basis.
6.1.3 Industrial Cooperative Societies engaged in the Industrial activity promoted by SC/STshould be exclusively (i.e.100% ownership) for the benefit of SC/ST entrepreneurs. 6.1.4 In case of Enterprises set up by SC/ST entrepreneurs, transfer of ownership is not permitted. However, transfer from one SC/ST entrepreneur to another SC/ST entrepreneuris allowed with the prior approval of Commissioner of Industries subject to condition thatultimately 100% share holding of the SC/ST entrepreneur is protected / maintained. 6.1.5 All non-statutory concessions granted to S.C. (Hindus) by the State Government including economic support schemes sanctioned by A.P.S.C. Co-op. Fin. Corporation (APSCCFC) have been extended to S.C. converts to Christianity and Buddhism as per orders issued in the G.O.Ms.No.341, Social Welfare (PR) Dept. dated 30.8.1977. 6.2.0 Service Sector projects by the SC/ST entrepreneurs as listed at Annexure- III 6.2.1 Preference should be given to a variety of service activities instead of same activity bymultiple entrepreneurs. The applications shall be scrutinized and approved by DIPC onfirst cum first serve basis. While releasing the Investment Subsidy, the seniority list willbe maintained at the Central Office separately for SLC & DIPC cases. 6.2.2 The SC/ST entrepreneurs are eligible for claiming subsidy on Fixed Capital Investmentand the investment made on the working capital is not eligible for claiming subsidy. 6.2.3 EM Part-I/Part-II/UAM are not necessary for the activities which are not required to beregistered under MSMED Act, 2006. 6.2.4 All the entrepreneurs should have Permanent Account Number (PAN) and should regularly file the Income Tax Returns. 6.2.6 Eligibility criteria for service sector for SC/ST Entrepreneurs for units at Annexure-III LINE OF ACTIVITY ELIGIBILITY & GUIDELINES 6.2.6.1 The manufacture, preservation or processing of goods : As per G O Ms Nos. 36 Ind. & Com. (IP&INF) Deptdt: 29/04/2015. 6.2.6.2 Mining or development or mines : The cost of equipment in mining process 6.2.6.3 The Hotel industry : The Fixed Capital Investment involved in the land, hotel building, equipment, furniture & Kitchen ware for running the hotel are eligible. 6.2.6.4 The transport of passengers or goods by road or by water or by air or by ropeway or by lift : Vehicles registered with RTA as motor cabs are eligible. Personal use vehiclesare not eligible for claiming the subsidy. Only commercial use vehicles are eligible. Cars of on-road price of more than Rs. 15 lakhs are not eligible. The district wise budget allocation based on SC/ST population will be provided separately. RTA should not convert transport vehicles / cabs to personal use vehicles without permission from GM, DIC within the period of six (6) years 6.2.6.5 The generation or distribution of electricity or any other form of power : The Fixed Capital Investment involved in the power generation plant is eligible. 6.2.6.6 The maintenance, repair, testing or servicing of machinery of any description or vehicles or vessels or motor boats or trailers or tractors : The Fixed Capital Investment involved in the land, building and tools / equipment is eligible.
6.2.6.7 Assembling, repairing or packing any article with the aid of machinery or power : The Fixed Capital Investment involved in the land, building & machinery/ equipment is eligible. 6.2.6.8 The setting up or development of an industrial area or industrial estate: : The guidelines for this line of activity is placed below the table under 6.2.7.8. 6.2.6.9 Fishing or providing shore facilities for fishing or maintenance thereof : The Fixed Capital Investment involved in land, building and equipment is eligible. 6.2.6.10 Providing weigh bridge facilities : The Fixed Capital Investment involved in the land, building and equipment is eligible. 6.2.6.11 Providing engineering technical, financial, management, marketing or other services or facilities for industry : The Fixed Capital Investment involved in the land, building and Tools /Equipment is eligible. 6.2.6.12 Providing medical, health or other allied services : The Fixed Capital Investment involved in the land, building and Hospital equipment is eligible. 6.2.6.13 Providing software or hardware services relating to information technology, telecommunications or electronics including satellite linkage and audio or visual cable Communication : The Fixed Capital Investment involved in the land, building and equipment is eligible. 6.2.6.14 Setting up or development of tourism related facilities including amusement parks,convention centres, restaurants, travel and transport (including those at airports), tourist service agencies and guidance and counselling services to the tourists : The Fixed Capital Investment involved in the land, building and equipment is only eligible. 6.2.6.15 Construction : The Fixed Capital Investment involved in the “construction equipment only” is eligible. 6.2.6.16 Development, maintenance and construction of roads : The Fixed Capital Investment involved in the equipment used for laying the Road is eligible i.e Road rollers, Pavers etc. 6.2.6.17 Providing commercial complex facilities and community centres including conference halls : The Fixed Capital Investment involved in the land, building is eligible. The other essential facilities required for complexes are also eligible. The facility created should be in the name of the entrepreneur or enterprise for a minimum period of six years. 6.2.6.18 Floriculture : The Fixed Capital Investment involved in the land, building and equipment is only eligible. 6.2.6.19 Tissue culture, fish culture, poultry farming, breeding and hatcheries : The Fixed Capital Investment involved in the land, building and equipment is only eligible. 6.2.6.20 Service industry, such as altering, ornamenting, polishing,finishing, oiling, washing,cleaning or otherwise treating or adapting any article or substance with a view to its use, sale,transport, delivery or disposal : The Fixed Capital Investment involved inthe land, building and equipment is only eligible. 6.2.6.21 ;Research and development of any concept, technology, design,process or product, whether in relation to any of the matters aforesaid, including any activities approved by the Small Industries Bank; or The Fixed Capital Investment involved in the land, building and equipment is only eligible.
6.2.6.22 ;Such other activity as may be approved by the Small Industries Development Bank of India. The Fixed Capital Investment involved in the land, building and equipment is onlyeligible. 6.2.7. The following are the guidelines for the line of Activity of “Setting up or development of an Industrial Area or Industrial Estate” by SC/ST entrepreneurs: (i) The minimum land area required shall be 10 acres. The land shall be registered in the name of the developer (SC/ST) only. Leased land is not allowed. (ii) The minimum plots in the estate shall be 10 (ten) plots and maximum 20 (twenty) plots. (iii) The Applicant (SC/ST entrepreneur) has to provide the facilities of infrastructure i.e.roads, water supply, power supply, waste management (Effluent Treatment Plant), bothsolid and liquid waste, fire safety measures etc. (iv) The title deeds are to be registered in favour of the Industrial Estate/ Industrial Area to beestablished by SC/ST entrepreneur and they shall be kept with the GM, DIC concerned inoriginal until the project is completed for proper utilization of the incentives released. (v) The Applicant should get the change of land use for the industrial purpose. The Applicantshould pay the NALA Tax before completion of the project. (vi) The Applicant should obtain approvals of layout, pollution clearance etc. from the LocalAuthorities/ competent authorities/APPCB; (vii) The Applicant should furnish the Project Report covering means of finance and sources of funding. (viii) In case of partnership, the Applicant should furnish the Registered Partnership Deed. (ix) In case Applicant is registered under Companies Act, the applicant should furnish theCertificate of Incorporation, Memorandum of Association, Articles of Association, Balance Sheet certified by a Chartered Accountant etc. (x) Subsidy / Incentives shall be released to Enterprise - Industrial Estate/ Industrial Area after approval of layout by the competent authority and after obtaining APPCB approval andalso after financial closure from the financial institution for the entire project. (xi) If any irregularities take place in Industrial Estate/ Industrial Area the concerned GM, DIC may take necessary action as per para 29 under intimation to the Commissioner ofIndustries . (xii) The allotment committee members from O/o GM, DIC will monitor the steps that are being taken for establishment of Industrial Estate/ Industrial Area by the SC/ ST Entrepreneurs. (xiii) No further subsidy shall be eligible for the land purchased by the units in the proposedIndustrial Estate, as the land is already covered under subsidy scheme. 6.3 INVESTMENT SUBSIDY: 6.3.1 SC/ST entrepreneurs can set up projects covered in the line of activities in Annexure –I and Annexure – III appended to, to avail the incentives under the Industrial Development Policy (IDP) 2015-2020 anywhere in the State. 6.3.2 Service Sector projects set up by the SC/ST entrepreneurs will be limited to 50% ofthe budget, in order to encourage the remaining 50% for the manufacturing sector. 6.3.3 Investment Subsidy shall be applicable to all eligible a) new MSEs and b)
Expansion/Diversification of MSEs, subject to fulfilment of the conditions stipulated inpara No. 4.4 or 4.5. 6.3.4 The line of activity of Proclainer is considered as eligible exclusively in case of SC/ST entrepreneurs and incentive shall be extended under service activity. 6.3.5 Two and Three wheelers are not eligible for any type of incentives under IndustrialDevelopment Policy 2015-20. 6.4 CLAIMING OF INVESTMENT SUBSIDY PRIOR TO DATE OF COMMENCEMENT OF COMMERCIAL PRODUCTION (DCP) BY SC/ST ENTREPRENEURS: 6.4.1 The Commissioner of Industries, A.P, Hyderabad will act as Nodal Agency for implementation of SCSP/TSP. 6.4.2 The GM, DIC will receive the applications and after scrutiny, place before the DIPCfor sanction of Investment Subsidy prior to DCP. In respect of Large and Mega Enterprises, the proposals will be forwarded to the Commissioner of Industries with the recommendations of the DIPC for placing before the SLC for sanction of Investment Subsidy prior to DCP. 6.4.3 New MSEs are only eligible for Investment Subsidy only after term loan is sanctioned and disbursed. 6.4.4 The Investment Subsidy prior to DCP would be computed, as per the financial institution‟s appraisal. However, the SC/ST Entrepreneurs should bring in capital of at least 10% of the total project cost. 6.4.5 The eligible SC/ST entrepreneurs shall submit the claim applications to the concernedGM, DIC in the prescribed application form given at Annexure-XVI, after sanction ofterm loan by the financial institution /scheduled commercial banks and after obtainingall the statutory approvals for establishment of the Enterprise. 6.4.6 The subsidy component should not be taken into consideration, while appraising theprojects by the financial institutions. The subsidy released can be adjusted against theterm loan account where the loan instalment was already released. 6.4.7 After release of Investment Subsidy, the Enterprise should commence commercial production within eighteen (18) months, otherwise the released Investment Subsidy will be recovered except in case where the unit fails to implement the project due to reasons beyond its control. DIPC or SLC will review such cases and take a decision. 6.4.8 The GM, DIC should monitor the progress of the Enterprise and submit report to theCommissioner of Industries on quarterly basis. 6.4.9 The SC/ST entrepreneurs are eligible for Investment Subsidy only after term loan issanctioned & disbursed. The District Collector & Chairman, DIPC will sanction and release Investment subsidy after disbursement of the term loan by APSFC/Scheduled Banks irrespective of the DCP in respect of MSMEs. The Commissioner of Industries, A.P, Hyderabad will sanction and release Investment Subsidy after disbursement of the term loan by APSFC/Scheduled Banks irrespective of the DCP in respect of Large and Mega Projects, to facilitate the SC/ST entrepreneurs to implement the project.
6.4.10 The Investment Subsidy prior to DCP will be sanctioned and released @ 35% and 45% of the eligible Investment Subsidy as 1st & 2nd instalments respectively in “pari passu” mode along with term loan by the District Collector & Chairman, DIPC / Commissioner of Industries & Chairman, SLC as the case may be subject to availability of budget under SCSP/TSP. 6.4.11 The final 20% Investment subsidy will be sanctioned and released by the DIPC or SLC as case may be after the commencement of commercial production. 6.4.12 The Self financed SC/ST Entrepreneurs are eligible for the Investment Subsidy as perGeneral Operational Guidelines of IDP 2015-20. In respect of Enterprises availing term loan from Non Banking Financial Institutions, the claim application will be considered provided that the lending rate of Non Banking Financial Institution shall be Primary Lending Rate (PLR) +2%. 6.5 GUIDELINES FOR BACKWARD CLASSES (BC) ENTREPRENEURS: 6.5.1 These provisions are applicable for MSEs set up by BC entrepreneurs. 6.5.2 There should be 100% ownership by BC entrepreneurs or both together in case of JointVenture Enterprise. Wherever BC entrepreneurs join together and form a joint venturesuch combination should continue for at least six (6) years from the DCP, failing whichthe special incentives allowed to BC entrepreneurs will be recovered and initiatingaction as per para 29. In this regard, the GM, DIC should monitor the progress of theseEnterprises and submit report to the Commissioner of Industries on quarterly basis. 6.5.3 Industrial Cooperative Societies engaged in the Industrial activity promoted by BC entrepreneurs should be exclusively (i.e.100% ownership) for the benefit of BC entrepreneurs. 6.5.4 In case of Enterprises set up by BC entrepreneurs, transfer of ownership is not permitted. However, transfer from one BC entrepreneur to another BC entrepreneur is allowed with the prior approval of Commissioner of Industries subject to condition that ultimately 100% share holding of the BC entrepreneur is protected / maintained. 6.6.0 INDUSTRIAL INFRASTRUCTURE DEVELOPMENT FUND (IIDF) :
6.6.1 These provisions are applicable for Medium Enterprises & Large Industries on case to case basis. 6.6.2 All eligible industrial Enterprises shall submit their claims in the prescribed application form given at Annexure – XV for financial assistance before DCP or within six months from the DCP along with required documents, to the GM, DIC concerned. 6.6.3 Infrastructure like roads, power and water will be provided at door step of the industry for standalone Enterprises/Industries by contributing 50% of the cost of infrastructure from IIDF with a ceiling of Rs.1.00 crore, subject to (a) the location should be beyond 10 km from the existing IE/IDA/IPs having vacant land/shed for allotment and (b) cost of the
infrastructure limited to 15% of the eligible Fixed Capital Investment made in the Industry. 6.6.4 The applications received by the GM, DIC will be placed before the DIPC after scrutiny for sanction of Infrastructure Assistance in respect of MSMEs set up by SC/ST entrepreneurs. In respect of Large and Mega Projects, the proposals will be forwarded to the Commissionerof Industries with the recommendations of the DIPC for placing before the SLC for sanctionof incentives. 6.6.5 The Enterprise/Industry should give a declaration stating that they have not availed anyfinancial assistance from the Government earlier for the proposed Infrastructure to bedeveloped. 6.6.6 Declaration from the line department concerned shall be obtained stating that the project is not covered in the budgetary estimates of current year. 6.6.7 The infrastructure estimates are to be confirmed by district head of the line department concerned with certificate that no departmental funds are availed for this purpose. 6.6.8 The State Government has provided financial assistance as a grant to the new IndustrialEnterprises for the development of following Infrastructure facilities up to the door step ofthe proposed Industrial Enterprises. a. Drinking Water and Industrial Water b. Electricity – Power connection c. Laying of drainage line from the Enterprise/Industry/Industrial Estate to the existing Point or to the natural drainage point: d. Approach Road to the Enterprise/Industry e. Any other infrastructure facilities as approved by the Government/SLC. 6.6.9 The Industries set up by BC entrepreneurs, which are declared as “ineligible industries” under Annexure-I and III of Industrial Development Policy – 2015-2020 are not eligible for financial assistance from IIDF. 7.0 MEGA PROJECTS: 7.1. Companies intending to establish Mega Projects and are desirous of seeking financialassistance/concessions have to make detailed representations along with project reports tothe Commissioner of Industries, clearly spelling out special incentives being sought withdue justification before or during initial stages of implementation. On receipt of suchproposals, Commissioner of Industries will examine the same with due diligence andforward it to the Government for placing it before the Empowered Committee ofSecretaries and SIPB for taking the decision in the matter. 8.0.0. COMPUTATION OF FIXED CAPITAL INVESTMENT: 8.1.0. LAND : 8.1.1. Cost of land required for the successful working of the new industrial enterprise wouldnormally be computed by considering value of five times the plinth area of the factorybuilding constructed and not exceeding the approved project cost. However, in respect ofEnterprises/Industries where the open land requirements would be large due to thespecific nature industry, SLC may consider allowing land in excess of 5 times of plintharea on case to case basis. However cost of site levelling, clearance, laying of roads, etc.will not be considered for capital cost.
8.1.2. Value of leased land will not be taken into account for capital cost. 8.1.3. Sale deed should be registered in the name of Enterprise/ Industry/ Proprietor as the case may be, for sanction of any incentives / concessions. 8.1.4. Lands inherited would not be considered for capital cost computation. 8.1.5. Stamp duty and Transfer duty component will not be taken in to account while computing the Fixed Capital Investment for sanction of Investment Subsidy, if it is claimed by the enterprise. 8.1.6. In case of availing 25% land cost on lands purchased in APIIC developed IEs/IDA/IPs,the land cost will not be taken in to account while computing the Fixed CapitalInvestment for sanction of Investment Subsidy. 8.2.0. FACTORY BUILDING: 8.2.1. The value of factory building constructions will be limited to the approved project cost.Values of leased building will not be taken into account. Cost of buildings will be computed as per the APSFC approved rates of construction / year of construction or the actual cost, whichever is lower. The items of civil works which are permitted for computation towards eligible cost are: (1) Main Factory Shed. (2) Raw Material and finished products godown. (3) Office room and Lab room. (4) Cooling water ponds. (5) Boiler shed and generator room. (6) Effluent treatment ponds, etc. (7) Overhead Tank, bore-wells, and pump house and sump. (8) Fencing and Gate. (9) Architect fee and supervision charges. (10) Compound wall. (11) Canteen. (12) Workers‟ rest room. (13) Time Office. (14) Cycle / Vehicle Stand. (15) Security Shed and (16) Toilet room and sanitary fittings. 8.2.2 The total value of items at (10) to (16) and similar items shall not exceed 10% of the total value of civil works. Total value of the civil works means items (1) to (9) only (within the approved project cost). The plinth area of the civil works based on the construction madeby the Industrial Enterprise from items (1) to (9) only. 8.3.0 PLANT AND MACHINERY 8.3.1. Value of plant, machinery and equipment installed and the value of tools (other thanconsumables) Jigs, Dies, Moulds, pollution equipment, lab equipment etc. necessary forproduction of approved line of activities will be taken into account, as per thenotification under MSMED Act, 2006 of GoI from time to time. Leased plant and equipment is not eligible for incentives. 8.3.2. Enterprise/Industry setup with total second hand machinery would not be eligible forany incentives/concessions. However in case of Enterprise/Industry setup with importedmachinery, value of 100% imported second hand plant, machinery and
equipment willbe considered as new indigenous machinery, if it is imported directly by the IndustrialEnterprise. In case of indigenous second hand machinery purchased by the Industrial Enterprise, such value should not exceed 25% of the total value of plant and machinery. The value of indigenous second hand machinery will not be computed towards eligible Fixed Capital Investment for incentives. To decide the percentage of second hand machinery, market value as certified by C.A. will be taken into account, subject to such machinery having a minimum of further six (6) years life for MSEs and twelve (12) years for Medium Enterprise and Large Industries certified by a Licensed Engineer. New Enterprise/industry setting up with a mix up of new / second hand machinery shall be subjected to these norms. 8.3.3 Expenditure on Technical Consultancy / Feasibility study including turn-key charges will be considered towards the Fixed Capital Investment, provided they are part of theapproved project cost, capitalised and certified by a C.A., but limited to 10% of the totalcost of plant machinery and equipment installed. 8.3.4. The value of plant, machinery and equipment procured by new Industrial Enterprise from APSFC / A.P. State Industrial Development Corporation / Nationalised Banks pertaining to disposed off Enterprise/Industry will be taken into account, provided such machinery has not enjoyed any incentives under any of the earlier incentive schemes. Onlydepreciated value of such plant, machinery and equipment, as certified by C.A. subject tosuch machinery having a minimum of further six (6) years life for MSEs and twelve (12)years for Medium Enterprise and Large Industries certified by a Licensed Engineer, willbe taken into account for computing towards eligible Fixed Capital Investment. 8.3.5. In respect of new Industries Enterprises setup in the premises belonging to disposed offEnterprises from any Financial Institution / disposed off enterprises/industries, if theearlier Enterprises availed incentives, only new assets created with fresh investmentwould be eligible for incentives. 8.3.6. Value of self-fabricated machinery by the new industrial Enterprise/Industry will have to be certified by a Chartered Engineer or Engineer of the term lending institution concernedfor the purpose of computing the eligible Fixed Capital Investment. 8.3.7 The new Industrial Enterprises set up for "Heavy Structural Fabrications" will be considered for grant of incentives only in case the following minimum plant, machinery and equipment are installed. (1) Gantry 5/10 tons capacity with chain pulley block or EOT/HOT crane 5/10 tons capacity. (2) Arc welding Transformer with welding Generators or Rectifiers. (3) Gas welding and cutting equipment. (4) Electrical tools namely; Grinder, Rivettor or Drilling Machinery or Pneumatic tools with air compressor. (5) Pillar type drilling machine 1" / 1.1/2" capacity. (6) Pug cutting equipment for cutting heavy sections viz. Angles, Plates and
Channels. (7) Drafting machine and drawing office equipment (optional). (8) Any other latest equipment to perform heavy structural fabrication in lieu of any of the above equipment. 8.3.8. Diesel Generator is not allowed for computing towards Fixed Capital Investment 8.3.9 Transformer cost is not allowed for computing towards Fixed Capital Investment 8.3.10 ITEMS NOT COMPUTABLE TOWARDS FIXED CAPITAL INVESTMENT.
(1) Working capital, raw material, stores and all consumables including spare tools, etc. (2) Value of the Motor Vehicles. (3) Pre-operative expenses, advances, expenditure not supported by payment of bills wherever necessary. (4) Investment made outside the approved project cost and items not covered by approved project. (5) Fixed assets which form part of project cost but not created within 6 months from theDCPor the date of filling the claim whichever is earlier, if it is financed enterprises/industry. (6) Term loan sanctioned by the Financial Institution after the DCP. (7) In case of self-financed Enterprise/Industry, the fixed assets created after the DCP and also payment made after DCP, such value. 9.0 GENERAL GUIDELINES 9.1 The claim applications filed after six months but before one year from the specified date as defined for sanction of incentives will be treated as belated claims and are eligible for 50% of all the incentives. All claims filed beyond one year are not eligible for any incentives. In case any claim application is received beyond one year after commencement of production, it will be considered on case to case basis as per specific Government instructions. 9.2 All eligible Enterprise/Industry should furnish a registered lease deed for a minimum six (6) years production period from the DCP. In case of service enterprises notified in Annexure – II, the registered lease deed shall be for a period of three (3) years from the DCP. 9.3 If any MSE taking up expansion/diversification had availed Investment Subsidy at any time, the subsidy amount already availed would be deducted from the eligible Investment Subsidy, and the total subsidy would be limited to Rs.20.00 lakh in case of general entrepreneurs and Rs.30 lakh in case of Women entrepreneurs and Rs.75 lakh in case of SC/ST/BC Entrepreneurs and Women SC/ST Entrepreneurs as per the limits prescribed in the IDP 2015- 20. 9.4 In case of existing Industrial Enterprise setting up a new industrial Enterprise with separate identifiable investment within the same land of the existing unit with compound wallseparating the two units having separate entry/out gate, the words 'SEPARATE IDENTIFIABLE INVESTMENT‟ shall means that the Enterprise/Industry should not haveany production linkage with the existing manufacturing process, such as using common railloading system for unloading raw materials and transporting finished products the newEnterprise/Industry should be in a separate building/shed, should maintain separate books ofaccounts and the project should be appraised
independently by financial institution as aviable project in case of aided units. In case of self financed units, SSC /MDC will decide theviability. A new project will not, however, be regarded as a "Separate IdentifiableInvestment" if the utilities of the existing Enterprise/Industry like water, electricity withoutseparate main meter (no sub-meter), steam, and pollution control systems, packaging etc areextended to the new Enterprise/Industry. Machinery bills and sale bills shall be maintained inthe name of unit I and unit II etc. and the same should be reflected in the annual financialstatements separately. 9.5 If any existing Industrial Enterprise setting up a new Industrial Enterprise with SeparateIdentifiable Investment for the same end product/new product at different location in the same name it will be treated as new Enterprise/Industry (Separate Identifiable Investment)for the purpose of sanction of various incentives, even though there is no separate VATregistration number and separate marketability, since the Commercial Tax Department isissuing only one VAT Registration number for one dealer even they have more than oneEnterprises/Industries within the State. However they have to maintain separate books ofaccounts for each location. 9.6 Expansion/Diversification Enterprise/Industry should also obtain all the statutory/requiredapprovals. 9.7 All the entrepreneurs should have Permanent Account Number (PAN) and should regularly file the Income Tax Returns. 9.8 In the instances where the raw materials/intermediate products are being transported as stock transfer, VAT/CST/SGST reimbursement will be limited in proportion of value addition on finished product. (Ex: In cement grinding units, if clinker is being stock transferred from their other units and they are paying tax without any input set-off and claiming reimbursement on gross VAT, then VAT reimbursement will be in proportion to actual value addition on the clinker). SSC /MDC along with the representative of Central Excise Department will decide the quantum of value addition for processing the claim application. 10. INELIGIBILITY : 10.1 Enterprises/Industries listed in Annexure-III are not eligible for any incentives/concessions in case of General/BC category Entrepreneurs. 10.2. New Industrial Enterprise being set up within the limits of Vijayawada, Greater Visakhapatnam Municipal Corporations and core capital area of CRDA except notified industrial zones therein. 10.3. New Industrial Enterprise established with plant and machinery on lease is not eligiblefor incentives/concessions. 10.4. New Industrial Enterprise established with second hand machinery is not eligible forincentives/concessions except where the cost of such machinery does not exceed 25%of the total cost of plant and machinery. 10.5. Composite industrial enterprises set up for manufacture of an eligible item along withan ineligible item are not eligible for incentives/concessions except when the proportionof ineligible items in the total production is less than 10% in value of the total turnoveras per G.O.Ms. No.20 Industries & Commerce (IP) Department, dated: 31.01.1997. 10.6. New Integrated Steel Plants which produces Ingots, Steel Billets, Coils, Strips, Slabs orAlloy Steels starting with iron ore / scrap and using the liquid metal
produced to makeBillets, Coils, Strips, Slabs or Alloy Steels and any melting Enterprises/Industriesinvolved in part production are eligible for all other incentives / benefits under IDP2015-20 except power cost reimbursement. However, manufacture of Sponge Iron andPig Iron are eligible for reimbursement of power cost including other incentives underIDP 2015-20. Integrated Steel Plants set up with blast furnace/ induction furnace areeligible for other incentives except power incentives. Whereas those set up with electricarc furnace are not eligible for incentives. 11. CHANGE OF CONSTITUTION/MANAGEMENT/ NAME OR STYLE OF INDUSTRIAL ENTERPRISE/INDUSTRY: The Industrial Enterprise that availed incentives/concessions should obtain the No Objection Certificate (NOC) from the financing institutions concerned in respect of aided Enterprise/industry and Certificate of incorporation from Registrar of Companies (ROC) within the first six (6) years for MSEs and eight (8) for Medium and Large Industries from the DCP, before seeking the approval of SLC for any change of the constitution/Management/name& style of the Industrial Enterprise. 12. LEASE OF ENTERPRISE/INDUSTRY: In case Industrial Enterprise that has availed incentives/concessions and whose management is not able to run the Enterprise/Industry and intends to lease out to other management within the first six (6) years for MSEs and eight (8) for Medium and Large Industries from the DCP, they should obtain the (NOC) from the financing institutions concerned in respect of aided Enterprise/Industry before seeking the approval of SLC. 13. CHANGE OF LOCATION OF INDUSTRIAL ENTERPRISES SANCTIONED INCENTIVES/CONCESSIONS: 13.1 Any MSMEs proposing to shift their Enterprises within the District should obtain NOCfrom the financing institutions concerned in respect of aided Enterprises/Industries beforeseeking the approval of DIPC concerned. In case of shifting of any Industrial Enterpriseoutside the District, they should obtain prior approval of the financing institutionsconcerned in respect of aided Enterprises/Industries before seeking the approval of SLC. In respect of Large industries proposing to shift within the District or outside the District,they should obtain prior approval of financing institution if it is aided and then approachCommissioner of Industries for permission of the SLC. Shifting of Enterprise/industryoutside the State is not allowed. 13.2 In respect of Self Financed Enterprises/Industries: In respect of MSMEs proposing toshift their Enterprises within the District, they should obtain prior approval of DIPC Concerned. In case of shifting of any industrial enterprise outside the District, they shouldobtain prior approval of SLC through the GM, DIC Concerned. In respect of LargeIndustry or Mega project (unaided or Self Financed) proposing to shift their
enterprise/industry either within the District or outside the District, should obtain prior permission from SLC. Shifting of Enterprise/Industry outside the State is not allowed. 14. MERGER/AMALGAMATION OF THE INDUSTRIAL ENTERPRISES: 14.1 Prior approval of the SLC is necessary for any merger/amalgamation of Enterprises/industries. The Public and Private Limited Companies seeking merger/amalgamation of their group of companies shall submit an application to Commissioner of Industries through GM, DIC concerned along with the necessary ordersof appropriate forum under Companies Act, NOC from the Financing Institution, amended LI/IL/IEM and Incorporation Certificate from the Registrar of Companies (RoC). 14.2 The Partnership Firm shall submit NOC from their Financing Institution and Firm Registration. The Proprietary concern shall submit NOC from the Financing Institution. 15. CHANGE OF LINE OF ACTIVITY/INCLUSION OF ADDITIONAL LINE OFACTIVITIES: If an Enterprise/Industry starts manufacturing new eligible items without any additional machinery or equipment, with the same plant & machinery, then such items shall be permitted for availing sale tax reimbursement within the period of five (5) years from the DCP of the original product. 16. BREAK IN PRODUCTION: The Industrial Enterprises obtaining incentives should be in continuous production for a period of six (6) years in respect of MSEs and eight (8) years in respect of Large and Mega Enterprises from the DCP failing which all incentives/concessions sanctioned are liable to be cancelled and the incentives/concessions already availed are liable for recovery. In this regard, the GM, DIC concerned should monitor the progress of these Enterprises and submit report to the Commissioner of Industries on a quarterly basis. Break-in-production up to a period of three (3) years due to the reasons beyond its control such as shortage of raw-materials, power and change of management, etc. may be condoned by DIPC in case of MSMEs and SLC in case of Large Industries on merits. Any break-in-production will result in extending the continuous production period requirement, which is six (6) years for MSEs and eight (8) years for Medium & Large Enterprises, by the period of such break. 17.0. PROCEDURE FOR SANCTION OF INCENTIVES: 17.1 Under the concept of Ease of Doing Business, inspection of District level cases is herebydelegated as detailed below: (A) For Aided units: On receipt of the application claiming incentives from the industrial Enterprises concerned for sanction of incentives under the scheme, the designated DIC official shouldinspect the Enterprise/Industry and verify all the records/documents as per
the PART-B/verification-cum-recommendation of the operational guidelines with check-list. (a) Micro Enterprises should be inspected by Industrial Promotion Officer (IPO) concerned and submit the report to General Manager. (b) Small Enterprises should be inspected by Assistant Director/Deputy Director of concerned area and submit the report to General Manager. However, concerned IPO of the area will be hand holding officer between enterprise and Area Officer. (c) Medium & Large Enterprises should be inspected by the General Manager. However, concerned Area Officer will be hand holding officer between enterprise and General Manager. (d) The inspecting officers are solely and severally responsible for the inspection. (B) For Self Financed Units: Self Financed Units will be inspected by Multi Disciplinary Committee (MDC) consisting representatives of DIC, APSFC and Commercial Tax Department. Under the concept of Ease of Doing Business, the inspection system was delegated among IPOs, ADs/DDs and GM as detailed below: (a) For Micro Enterprises, the MDC comprises concerned IPO, Deputy Manager of APSFC and representative of Commercial Tax Department (b) For Small Enterprises, the MDC comprises concerned Assistant Director/Deputy Director, Manager of APSFC and DCTO of Commercial Tax Department (c) For Medium Enterprises, the MDC comprises General Manager, Senior Branch Manager of APSFC and CTO of Commercial Tax Department (d) In case of Large & Mega Self Financed Units, Standing Scrutiny Committee (SSC) consisting Additional Director of Industries, Branch Manager of APSFC and Commercial Tax Officer of the concerned area. However, concerned General Manager will be the hand holding officer between enterprise and SSC. 17.2 If it is an aided or self financed Enterprise/Industry, the inspecting officers should verify all the machinery as per machinery list with bills, payment proofs and certify on the list ofmachinery as follows: “Verified Plant & Machinery. Found tallying with the list. Duly erected and put to use and is required for manufacturing the approved lines of activities. There are no second hand machinery items in the list”. If any second hand machinery exists in the list, it can be certified accordingly. 17.3 If it is an aided Enterprise/Industry, the financial institution & concerned Inspecting Officershould certify that “this is to certify that from the above list of plant & machinery Sl. No.____ to _____ are new and Sl.No._____ to _____ are second hand machinery. Wherever there is a difference of opinion on the genuiness of plant and machinery between financial institution and the departmental officer, the unit may be ordered for inspection by MDC /SSC after placing the issue before the DIPC / SLC as the case may be. 17.4 Scrutiny/Verification Committees (SVC) at the State Level and District Level are constituted for scrutinising and recommending the claims for these incentives to the SLC/DIPC respectively. 17.5 Committees at the State Level and District Level are constituted for sanction/rejection the claims for these incentives.
18.0 STATE LEVEL SCRUTINY/VERIFICATION COMMITTEE FOR VARIOUS INCENTIVES/CONCESSIONS OF LARGE & MEGA INDUSTRIES (a) Additional Director Chairman (b) General Manager, A.P. State Financial Corporation, or his nominee. Member (c) Nominee of Commissioner, Commercial Taxes Dept Member (d) Nominee of Managing Director, APSPDCL, Tirupathi Member (e) Nominee of Managing Director, APEDCL, Visakhapatnam Member (f) Nominee of Managing Director, A.P. Industrial Infrastructure Corporation. Member (g) Nominee of Inspector General, Registration & Stamps, Member Revenue Department (h) Nominee of Chief Commissioner, Land Administration Member (i) Representative from A.P. Chamber of Commerce and Industry.Member (j) Representative from FAPSIA Member (k) Lead District Manager or his nominee. Member (l) Joint Director concerned Member- Convenor 19.0 DISTRICT LEVEL SCRUTINY/VERIFICATION COMMITTEE FOR VARIOUS INCENTIVES/CONCESSIONS (MSMEs) (a) General Manager, District Industries Centre Chairman (b) Manager, A.P. State Financial Corporation Member (c) Zonal Manager, A.P. Industrial Infrastructure Corporation or his nominee. Member (d) District Registration & Stamps, Revenue Department or Member his nominee. (e) Representative from DISCOM concerned Member (f) Commercial Tax Officer, Commercial Taxes Department or his nominee.Member (g) Representative from A.P. Chamber of Commerce and Industry Member (h) Representative from FAPSIA Member (i) Lead District Manager or his nominee. Member (j) Deputy Director/Assistant Director concerned Member-Convenor 20.0 POWERS OF SCRUTINY/VERIFICATION COMMITTEES OF DIPC/SLC. 20.1. After receipt of claim application along with Part-B of verification-cumrecommendation,the Member-Convenor will prepare the appraisal note for each casein the form prescribed for placing before respective Scrutiny-cum-Verification Committee for recommending to the SLC/DIPC, as the case may be. 20.2. The Scrutiny-cum-Verification Committees will meet as often as required, but not lessthan once a month. The Member - Convenor will arrange to record the minutes of eachmeeting, get them duly approved by the Additional Director concerned/General Manager concerned and will be placed before SLC/DIPC. 20.3. After receipt of Scrutiny-cum-Verification Committee recommendations, the Member-Convenor of SLC/DIPC will prepare the agenda note for placing before SLC/DIPC fortaking decision.
21.0 COMMITTEES ON INCENTIVES: 21.1 STATE LEVEL COMMITTEE ON INCENTIVES (SLC) – LIST OF MEMBERS: (1) Commissioner of Industries, Hyderabad.Chairman (2) Additional Secretary/Joint Secretary/Deputy Secretary to Government, Finance & Planning (Fin.Wing) Dept., Dealing with the subject Member (3) Additional Secretary/Joint Secretary/Deputy Secretary to Government, Industries & Commerce Department Member (4) President of Federation of A.P. Chamber of Commerce and Industry Member (5) The Chairman of Confederation of Indian Industry (CII) Member (6) The President of Federation of A.P. Small Industries Association (FAPSIA) Member (7) President, Federation of the Small and Medium enterprises (FSME) Member (8) President, Dalit Indian Chamber of Commerce & Industry (DICCI) Member (9) President, Andhra Chamber of Commerce,Vijayawada Member (10) President, ALEAP (11) The Chairman, A.P. Spinning Mills Association,Hyderabad.Member (12) Managing Director, A.P. State Financial Corporation, Hyderabad or his nominee. Member (13) Managing Director, A.P. Industrial Infrastructure Corporation, Hyderabad or his nominee.Member (14) Commissioner of Commercial Taxes, Hyderabad or his nominee.Member (15) Commissioner of Tribal Welfare, Hyderabad or his nominee.Member (16) Commissioner of Social Welfare, Hyderabad or his nominee.Member (17) Commissioner of BC Welfare, Hyderabad or his nominee.Member (18) Director, Commercial, APTRANSCO or his nominee Member (19) Commissioner & Inspector General, Registration &Stamps, Revenue Department or his nominee. Member (20) Member Secretary, APPCB or his nominee. Member (21) Commissioner, Transport or his nominee Member (22) Chief Commissioner, Land Administration or his nominee Member (23) Convenor, SLBC Member (24) Nominee of Syndicate Bank Member (25) Nominee of State Bank of India Member (26) Nominee of State Bank of Hyderabad Member (27) Nominee of Andhra Bank Member (28) Additional Director of Industries dealing with the subject incentives.Convenor 21.2 The above Committee shall scrutinize and sanction the claims of Large Industries and Mega Projects. 21.3 DISTRICT INDUSTRIES PROMOTION COMMITTEE (DIPC) ON INCENTIVES – 1. District Collector ... Chairman 2. General Manager, District Industries Centre ... Member – Convener 3. Dy Commissioner of Commercial Taxes Department ... Member 4. Branch Manager, A.P. State Finance Corporation ... Member 5. Deputy Chief/ Inspector of Factories Department ... Member
6. Environmental Engineer, A .P. Pollution Control Board... Member 7. Superintendent Engineer / Divisional Engineer, APTRANSCO/DISCOMs ... Member 8. Zonal Manger, A.P. industrial Infrastructure Corporation ... Member 9. Representative of MSME-DI, … Member 10. Representative from Social Welfare Department … Member 11. District Panchayat Officer … Member 12. Commissioner, Municipality / Urban Development … Member 13. Lead District Officer / Lead Bank Manager … Member 14. Five (5) representatives of Industrial Associations … Members 15. Representatives of any Department / of India or Expert as Special Invitee, wherever necessary … Member 21.4 The DIPC shall scrutinise and sanction the claims of the MSME Enterprises (as defined by the Government of India from time to time) of the District concerned. 22.0 POWERS OF SLC AND DIPC. 22.1. The SLC and DIPC will meet as often as required, but not less than once in two monthsin so far as sanction of incentives are concerned. The Member- Convenor will arrange torecord the minutes of each meeting, get them duly approved by the Chair-person andcommunicate attested copies to all the members. 22.2. The decisions of the SLC shall be final in scrutinizing, deciding the eligible investment,sanctioning the incentives in implementation of the Government Orders. However, SLCcan also review the earlier decisions wherever necessary in regards to scrutiny andsanction within the frame work of the policy. In case of any doubt/ambiguity on any issueor item covered by these guidelines for implementing the scheme of IDP / MSME /Sectoral policies 2015-2020, the decision / interpretation of SLC will seek directions ofthe Government. 22.3. In view of delegation of powers to districts for scrutiny and sanction of claims in respect of MSME units as defined in MSME Act from time to time, a system of review andintervention on all pending claims beyond two months from the date of receipt of theproposal at the DICs will be reviewed by SLC and initiate appropriate action for concluding the proposals / claims. GM, DIC shall send the list of all sanctioned cases to the Commissioner of Industries from time to time to enable to take up random inspections. SLC will select at least 20% of sanctioned claims by the DICs to cause random scrutiny of the files including visit of the unit to ensure a fair system of checks and balances. 22.4. The SLC has the powers to condone the Break-in-production period of industrial Enterprises upto three (3) years in respect of large & mega industries. Similarly DIPC hasthe power to condone the Break-in-production period of industrial Enterprises upto three(3) years in respect of MSMEs. However, such Break-in-production period should be dueto the reasons beyond the control of the Management such as shortage of raw-materials,power and change of management, Fire Accidents etc. 22.5. The SLC will review the working of the scheme and release of funds. 23.0 WORK TO BE ATTENDED BY THE MEMBER - CONVENOR (SLC):
23.1.0. Convening the SLC meetings, drawing up the minutes of the meetings and communicating these to the members with the approval of the Chairperson; 23.1.1. Disbursement of funds to the Enterprises/Industries sanctioned observing the chronological order of sanctions within the set pattern and norms approved by SLC, if necessary. 23.1.2. Arranging maintenance of records of sanctions / disbursements in the manner prescribed. The incentive sanction register should be in the form prescribed. 23.1.3. Monitoring effective implementation of the scheme. 23.2.0. WORK TO BE ATTENDED BY THE MEMBER - CONVENOR (DIPC) : 23.2.1. Convening the DIPC meetings, drawing up the minutes of the meetings and communication to the members and to the Commissioner of Industries with the approval of Chairperson. 23.2.2. Maintaining necessary accounts and registers and furnish details as and when calledfor by the SLC / Commissioner of Industries and producing to the audit. The incentivesanction register should be in the form prescribed. 23.2.3. Arranging periodical inspections of the beneficiary Enterprises and send Annual Performance Reports (APRs) on continuity in working etc. to the Commissioner of Industries. 24.0 PROCEDURE FOR DISBURSEMENT OF FUNDS. 24.1. (a) For Large and Mega Enterprises: In respect of SLC sanction, Member Convener of SLC shall issue consolidated proceedings in favour of industrial enterprises marking acopy to the General Manager, DIC concerned and also issue individual releaseproceedings. The designated inspecting officer i.e., GM, DIC after receipt of consolidated proceedings shall obtain an agreement bond in prescribed proforma, advanced stamped receipt and assignment letter and submit to the Commissioner of Industries after satisfying himself on the physical verification that the Enterprise/ Industryis working continuously, the assets are intact and there is no change in the management,no change of financial institution and also the Enterprise/ Industry complying with theconditions, if any, imposed in the consolidated proceedings. 24.1. (b) For Micro, Small and Medium Enterprises: In respect of DIPC sanction, MemberConvener of SLC shall issue consolidated proceedings in favour of industrial enterprisesmarking a copy to the Commissioner of Industries and also issue individual releaseproceedings. The designated inspecting officer as per the investment criteria shall obtainan agreement bond in prescribed proforma, advanced stamped receipt and assignmentletter and submit to the GM, DIC after satisfying himself on the physical verification thatthe Enterprise/ Industry is working continuously, the assets are intact and there is no change in the management, no change of financial institution and also the Enterprise/ Industry complying with the conditions, if any, imposed in the consolidated proceedings. 24.2. In case of disbursements of Reimbursements of Stamp duty & Transfer duty, rebate in land cost in IEs/IDAs, Power consumption charges, Commercial Tax, such reimbursement
amounts will be paid to the industrial Enterprises concerned, in favour of the Enterprise/Industry to its Term Loan account through RTGS/NEFT & send the same to therespective Financial Institution direct under intimation to the beneficiary. However, released subsidy amount is over and above the instalment due amount and the account is regular with prompt repayment of term loan, the Bank Manager / Financial Institution is free to transfer the balance subsidy amount beyond instalment to the any other account ofthe enterprise or industry. The concerned inspecting officer on receipt of the individualproceedings shall obtain a self certification, utilization certificates in prescribed proforma& advanced stamped receipt from the Enterprise/Industry and submit the same in originalto the Commissioner of Industries in respect of Large and Medium enterprise and to the GM, DIC in respect of MSMEs, after due procedure indicated at para 24.1(a) and (b) 24.3. Government will allocate the funds for disbursement of incentives under the scheme. The funds so allocated will be drawn and kept in the P.D. Account of Commissioner ofIndustries. In turn Commissioner of Industries will transfer the required budget to GM,DICand it will be kept in the PD Account of the District Collector who in turn will release tothe individual enterprises as per due procedure stated at para 24.1.(a). 24.4. The disbursements are made in a bunch of cases through consolidated proceeding for SLC sanctions by the Commissioner of Industries and DIPC sanctions by the District Collector and Chairman, DIPC observing the chronological order of such meetings held. Consolidated proceedings indicating the name of the industry, amount sanctioned and amount released to the Accounts Officer, O/o. Commissioner of Industries in respect of Large and Mega Projects and in respect of MSMEs, the proceedings for released to a designated officer handling PD Account at District Level. 24.5 In case of industrial Enterprises which have availed any bridge loans against the anticipated subsidy, the subsidy amount shall be released first to the Financial Institution which has sanctioned and released bridge loan, to discharge the liability in full against such sanction and balance amount, if any, would be released in the manner prescribed at para 24.2. 24.6. Wherever the GM, DIC finds any Industrial Enterprise sick, closed, change of management taken place, change of financial institution etc, or for any other reason not worthy of receiving subsidy till further examination, the Commissioner of Industries / GM, DIC shall not disburse the subsidy to such Enterprise/Industry and a written intimation to be given to the Industry/Enterprise by the GM, DIC. In case of above two situations, the subsidy shall be disbursed only after further clearance given by the SLC. 25.0 FUNCTIONS TO BE ATTENDED BY GENERAL MANAGER, DICs: 25.1. Receiving and processing of claim applications strictly as per seriatim and to ensure forplacing the same before the SVC and DIPC within one month in respect of MSME casesand in respect of Large and Mega projects, Commissioner of Industries
office will receiveand process claim application strictly as per seriatim and place the same before SVC andSLC within one and half month. 25.2. At the time of disbursement of funds, stamped receipts and assignment letters in theprescribed forms will be obtained. 25.3. To initiate action to recover the incentives wherever warranted. In respect of Break-inproduction of Enterprise and break in partnership of ownership of the unit, the concernedGM, DIC should monitor the progress of these Enterprises and submit report to theCommissioner of Industries on a quarterly basis. 25.4. The General Manager, District Industries Centre shall receive online incentive applications and issue acknowledgement for the Hardcopies of the Enterprise / Industries.The General Manager, DIC should give access for downloading the online applications tothe concerned Inspecting Officers / IPOs / ADs / DDs on daily basis and the officersshould visit the industry for obtaining application form/hard copies and enclosures as percheck list within 7 days. The General Managers should review the cases wherever thereare delays beyond 7 days and place in the DIPCs for review. In respect of Large andMega Projects, the designated Inspecting Officer or GM, DIC will follow the similarprocedure. 25.5. The Commissioner of Industries and General Managers of District Industries Centresshall maintain a separate registers a) Receipt of Incentive Applications b) Sanctions c)Receipt of funds and releases. 25.6. All files pertaining to sanctioned DIPC and SLC cases must be recorded and kept for aperiod of 10 years, and made available for inspection of audit / inspecting authorities. Files pertaining to audit objection if any, shall be kept in record till such objections are cleared/deleted from the audit paras. 25.7. All files pertaining to sanctioned DIPC and SLC cases should be converted into digitalmode by meeting the expenses from the overall earmarked under administrative expenses. However, efforts can be made to obtain the attached documents in the soft copy from the online applications to reduce the burden of scanning documents. 26.0 RECOVERIES OF INCENTIVES SANCTIONED UNDER THE SCHEME. Incentives/concessions granted to an industrial enterprise shall be liable to be recovered underthe following circumstances. 26.1. If the incentives/concessions are obtained by the industrial enterprise by misrepresentation of essential facts or by furnishing of false information or suppressions of facts or by submission of false/fake documents etc. In addition to recovery of the incentives granted, penalty will be levied @ 5 times of the sanctioned and disbursed amount and barred from availing incentives in future. 26.2. If the industrial enterprise goes out of production within six (6) years for MSEs andeight (8) years for Medium & Large Enterprises from the DCP. However, in case where the Enterprise/Industry remains out of production for period upto 36 months due to the reasons beyond its control such as shortage of raw-materials, power and change of management, bills receivables, recession in the market etc., and the same is regularized by the DIPC/SLC are exempted from recovery/penalty.
26.3. If the industrial enterprise fails to furnish the prescribed statements and/ or informationwhen it is called upon to furnish. 26.4. If the industrial enterprise effects change of management without prior approval fromthe financing institution concerned and the State Level Committee. 26.5. If the industrial enterprise shifts a part or whole of the industrial Enterprise/Industry,or lease out the whole or part of premises or the plant and machinery after receiving apart or whole of the incentives without prior approval of the DIPC/SLC. 26.6. If the whole or part of the industrial enterprise is sold without the prior approval of theSLC. 26.7. If the industrial enterprise enters into a contract of any nature whatsoever by transferring the Management, without the prior approval of the SLC. 26.8. In the event of recoveries for reasons arising mentioned above, they shall be recoveredtreating them as arrears of Land Revenue under A.P. Revenue Recovery Act, 1864 andthe GM, DICs will be designated as recovery officers by suitable Government Orders. 26.9. In this regard, the GM, DIC concerned should monitor the progress of the Enterprisesand submit report to the Commissioner of Industries on half-yearly basis. In respect ofadvance subsidy cases, advance subsidy released to the unit shall be recovered underRR Act if the unit fails to implement the project within 2 years from the date of releaseof first instalment. In such cases, criminal action will be initiated. 27. FURNISHING OF STATEMENT OF ACCOUNT/INFORMATION BY ELIGIBLEINDUSTRIAL ENTERPRISES: Industrial Enterprises, which obtain incentives under the scheme, shall furnish certified copy of audited accounts including Balance Sheet before 30th June of the succeeding year to thedisbursing agencies i.e. to the GM, DIC, of District concerned. Such statement should befurnished for a period of minimum six (6) years or eight (8) years as the case may be. Further,industrial Enterprises should also furnish details of production, sales, employment, etc., in theproforma prescribed to the GM, DIC concerned as an Annual Return before 30th June of thesucceeding year and obtain acknowledgment thereof. However, Enterprises which are released capital subsidy not exceeding Rs.1,00,000/- may furnish only the Annual Performance Report in the proforma prescribed to the General Manager, DIC concerned as an Annual Return before 30th June of the succeeding year and obtain acknowledgment thereof for a period of six (6) years or eight (8) years as the case may be after going into commercial production. In case if any entrepreneur fail to submit the certified audited accounts including Balance Sheet or Annual Performance Report in time, the recurring incentives in future will be stopped. 28. INTERPRETATIONS: When any matter arises for the purpose of interpretation on which State Level Committee (SLC) could not take a decision or in case where any suggestions are made outside the scope of SLC in regard to implementation of the scheme, such matters shall be referred to the Government in Industries & Commerce Department, Government of Andhra Pradesh for decision. 29. PENALTIES: Without prejudice to anything included in para 26, it is hereby ordained that any wilful
misrepresentation of facts, action/inaction on behalf of entrepreneur leading to irregular sanction/disbursement of incentives under the above policies will invite civil and criminal action as per extant laws besides recovery of the amount irregularly disbursed, if any, and debarring the unit from claiming incentives in the future. The required Formats for applying to different kinds of Incentives are annexed to the G.O. cited above and can be downloaded from www.apindustries.gov.in. ********* ANNEXURE –I (G.O. Ms. No.108 , Ind. & Com. (P&I) Dept., Dt:14.11.2015) LIST OF INELIGIBLE INDUSTRIES Sl. No. ACTIVITY 1 Khandasari Sugar and Sugar Mills and Jaggery making. 2 Distilleries, Rectified Spirit (Alcohol) from Molasses, Breweries, Beer and other Alcoholic Drinks, except Winery 3 All animal rearing/farming like poultry, piggery etc., 4 All types of Hatcheries except mechanized hatcheries 5 Alcohol based Industries except Pharmaceuticals, APIs, Intermediates, Drug and other products having utility for medical purposes 6 Varnishes and Thinners. 7 Cotton ginning except Modern ginning as per the norms of Technology Mission on Cotton, Ministry of Textiles ,Government of India. 8 Chloral Hydrate. 9 Lime Kiln/Burnt Lime/Hydrated Lime, except units adopting Rotary kiln system. 10 Book binding/Note Books/Exercise Note Books/Registers/Ledgers/File Pads/Office Files etc. except those units using mechanised processes. 11 Tobacco barons/tobacco re-drying/processing, Beedi /Cigarette manufacturing and other tobacco based products 12All types of Saw-mills, except Medium Density FibreBoard(MDF), Particle Board (PB) and furniture made of MDF and PB 13 Road Metal/ Stone Crushing/Coal Pulverizing 14 Soap making units not operated by power driven machinery 15 Shampoos and other Cosmetic items except those having National / International certifications 16 Cinematography/ Videography / Video Parlours /Theatres/ Photo studios. 17 All industries of mobile nature like rigs, concrete mixing plants, road metal mixing, readymade concrete mixing etc., including site oriented industries. 18 Tailoring other than readymade Garments 19 Mining and Quarrying 20 All types of Generation, Transmission and Distribution of Electricity 21 X-ray clinics and clinical/pathological laboratories and scanning, MRI Tests 22 Servicing and /or repairing units activities except Cold storage and Seed processing units 23 Calcium carbide and Silicon carbide manufacturing.
24 Ferro Alloys Manufacturing except with captive power plant 25 Steel Rerolling mills, rolling of rods including Tor steel angles, channels, Flats etc. except the units set-up in Industrial Estates/Areas/Parks. 56 26 Steel Structural and fabrication works other than heavy structural‟s using 5 ton capacity crane 27Steel gates/grills, G.I.Buckets, Gamelas, Boiling Pans, Trunks, Spades, Mamotees, Shovels and Bins and Bright bars, except mechanized units with investment on Plant and Machinery Rs.25 Lakhs and more. 28 Hotels and Motels (Tourism Policy shall be followed by Dept. of YAT&C) 29Composite Units setup for manufacture of an eligible items along with in-eligible items except when the proportion of in-eligible items in the total production is less than 10% in value of the total turnover 30 Plastic carry bags with less than 40 microns thickness 31 Fire crackers manufacturing enterprises 32 Tyre Pyrolysis 33 Manure mixing industry except the units with mechanised process 34Steel Ingots/Billets, Except Green field Integrated Steel Plants, which produces Steel Ingots, Billets, Coils, Strips, Slabs or Alloy Steels through Blast Furnace /Induction Furnace route starting with iron ore and using the liquid metal produced from the Blast Furnace to make Ingots, Billets, Coils, Strips, Slabs or other Steel Alloys without using Electric Arc Furnace. However, these Greenfield Integrated Steel Plants shall not be eligible for reimbursement of power cost. 35 Any other industry notified by the State Government for inclusion in this list from time to time. Note: In respect of Food Processing Industries, the incentives shall be determined as per the Food Processing Policy 2015-20 and Guidelines. ANNEXURE-II (G.O. Ms. No.108 , Ind. & Com. (P&I) Dept., Dt:14 .11.2015) List of Enterprises related to Service industry, Eligible for Investment subsidy only S.No Activity 1 Industrial / Material testing laboratories 2 R&D Centres related to industry 3 Printing presses, offset printing press, Flexi/Vinyl Printing, Flexo printing, colour film laboratories, video mixing 4 Machine operated Seed grading services 5 Machinery Training Centres with necessary machinery and equipment (other than educational institutions) 6 Power Laundries 7 Ready-made Garments units with investment more than Rs. 5.00 lakhs on Plant & Machinery 8 Cotton/Jute/Iron Scrap/Plastic/Paper/Hay etc.Baling presses. 9 Auto servicing and /or repairing units with investment more than Rs.10.00 lakhs on Plant & Machinery, engineering machining workshops, Common effluent treatment plans 10 Packaging activity with investment more than Rs. 5.00 lakhs on equipment
11 General Engineering and Fabrication works 13 Machine operated Book binding Enterprises and Note Books with investment more than Rs. 5.00 lakhs on Plant & Machinery 14 Any other Service Enterprises notified by the State Level Committee for inclusion in this list from time to time. Note: 1) The investment subsidy for the above activities shall be only on the value of Plant & Machinery/ Equipment. 2) Service Sector projects set up by the entrepreneurs will be limited to 50% of the Budget Provision inorder to encourage the remaining 50% for the manufacturing sector. 3) The above service activities set up anywhere in the State are eligible for investment subsidy only andall other service activities are not eligible for any other incentives. ANNEXURE-III (G.O. Ms. No. 108 , Ind. & Com. (P&I) Dept., Dt:14.11.2015) (Applicable only for the Scheduled Castes & Scheduled Tribe Entrepreneurs) The line of activities for industrial concern under Section 2 (c) of the State Financial Corporations Act,1951. 1. the manufacture, preservation or processing of goods; 2. mining or development of mines; 3. the hotel industry; 4. the transport of passengers or goods by road or by water or by air or by ropeway or by lift; 5. the generation or distribution of electricity or any other form of power; 6. the maintenance, repair, testing or servicing of machinery of any description or vehicles or vessels or motor boats or trailers or tractors; 7. assembling, repairing or packing any article with the aid of machinery or power; 8. the setting up or development of an industrial area or industrial estate; 9. fishing or providing shore facilities for fishing or maintenance thereof; 10. providing weight bridge facilities; 11. providing engineering, technical, financial, management, marketing or other services or facilities forindustry; 12. providing medical, health or other allied services; 13. providing software or hardware services relating to information technology, telecommunications orelectronics including satellite linkage and audio or visual cable communication; 14. setting up or development of tourism related facilities including amusement parks, convention centres,restaurants, travel and transport(including those at airports), tourist service agencies and guidance andcounselling services to the tourists; 15. construction; 16. development, maintenance and construction of roads; 17. providing commercial complex facilities and community centres including conference halls; 18. floriculture;
19. tissue culture, fish culture, poultry farming, breeding and hatcheries; 20. service industry, such as altering, ornamenting, polishing, finishing, oiling, washing, cleaning or otherwise treating or adapting any article or substance with a view to its use, sale, transport, delivery ordisposal; 21. research and development of any concept, technology, design, process or product, whether in relation to any of the matters aforesaid, including any activities approved by the Small Industries Bank; or 22. such other activity as may be approved by the Small Industries Bank . Explanation 1:- The expression „processing of goods‟ includes any art or process for producing, preparing or making an article by subjecting any material to a manual, mechanical, chemical, electrical or any other like operation. Explanation 2:- If any doubt arises as to whether a concern is industrial concern or not, the same shall be referred to the Small Industries Bank for its decision and the decision of the Small Industries Bank thereon shall be final. The Small Industries Bank means the Small Industries Development Bank of India established under section (I) of section 3 of SIDBI Act, 1989 (39 of 1989). Note: Service Sector projects set up by the SC/ST entrepreneurs will be limited to 50% of the SCP/TSPBudget Provision in order to encourage the remaining 50% for the manufacturing sector.
Section 4 (1)(b) (v)
Rules,Regulations,Instructions,ManualandRecords,forDischargingFunctions[Section4(1)(b)(v)&(vi)]
Thefollowingarethemajorenactments/rulesformulatedby StateandCentral
GovernmentsconnectedtotheIndustriesfor enforcement of the provisions by functionaries in the State.
1. Micro Small and Medium Enterprises Developmet
Act 2006 : FormulatedBy Govt of India.
2. A.P.SingleWindow Clearances Act, 2002 : Formulated byGOAP 3. A.P.Air(Pollution Contro&Prevention) Act,1981 : Formulated byGOAP 4. A.P Water(Pollution Contro&Prevention) Act,1974 : Formulated byGOAP 5. A.P.Panchayat Raj Act,1994 : Formulated byGOAP 6. A.P.Drugs&Cosmetics Act,1940 : Formulated byGOAP 7. A.P. Boilers Act : Formulated byGOAP 8. Forest Conservation Act,1980 : Formulated byGOI 9. A.P.IndustryFacilitation Council, :Formulated byGOAP 10. A.P.SmallSclaeIndustrie Revival Scheme(APSSIRS) : Formulated byGOAP 11. Rate Contract System under MarketingAssistance : Formulated byGOAP
Scheme for 17 items 12. Delegation of Powers to Assistant Director of Industries : Formulated byGOAP
under APRR Act 13. Urban Land CeilingAct,1976 : Formulated byGOAP 14. A.P. Cooperative Societies Act,1964 : Formulated byGOAP 15. All General Rules/Account Codes/Acts/Procedures issued byGovernment
of A.P. from timeto time.
Besides havingthe above Acts &Rules, the Department is havingseparate set ofRules foeGazitted Officers&Non-Gazitted Officers.
Section 4 (1)(b) (vi)
CategoriesofDocumentsheldbythePublicAuthority
underitscontrol[Section4(1)(b)(vi)
TheDepartmentishaving periodicalreportformsprescribedforsubmissionof
reportsyearly,Half-Yearly,Quarterly,Monthly,etcforobtaining information on various itemssuchasproductionparticulars,ScarceRawMaterialutilization particulars, inspection ofproperutilization ofincentives, etc.
Besides the above, the department is maintaining registers of attendance, periodicalregisters,callbook, records maintenance register, stock files dispatch register, stampaccount,registersonstationary,printedforms library, etc, cash book, service registers and annul confidential registers, tour diaries.
RelevantprintedApplicationForms are available at Respective District
Industries Centre/Commissionerate of Industries and they can also bedownloadedfrom www.apindustries.gov.in
Section 4 (1)(b) (vii)
The particulars of any arrangement t h a t e x i s t s forconsultationwith,orRepresentationby, theMembersofthePublic in relation to the Formulation of its PolicyorImplementationthereof:
Additional Directorsand concerned Porogramme Officers in Cadre of
JointDirectorhavetobeconsultedfurtherforimplementationofpoliciesasshown below. However,CommissionerofIndustriesistheAppellateauthorityforformulation of policy.
At the District level the
GeneralMangeroftheconcernedDistrictIndustries Centre has to be contactedforimplementationofthepolicyandprovidingimportant services .
Section 4 (1)(b) (vii)
The particulars of any arrangement t h a t e x i s t s forconsultationwith,orRepresentationby, theMembersofthePublic in relation to the Formulation of its PolicyorImplementationthereof:&Section 4 (1)(b) viii
A statement of the boards, councils, committees and other bodiesconsistingoftwoormorepersons constituted as IIS partorforthe purposeofitsadviceandastowhether meetingsofthoseboardscouncilscommittees and other bodies are open to the public or the minutes of such meetingsareaccessibleforpublic: TheGovernmenthavetimetotimeconstitutedcertainBoards, Councils, CommitteesinIndustriesDepartmentforspeedy implementationofpoliciesconnectedto theIndustrialdevelopmentandpromotionofincentives and clearances/approvals.The followingare the Committees/Councils.
I.
SIPBStateInvestmentPromotionBoardisconstitutedundertheChairmanshi
p of Hon‟ble CM for clearingthe problems faced bythe industries.
II. SIPCStateInvestmentPromotionCommitteehasbeenconstitutedunderthe
ChairmanshipofChiefSecretary
toGovernmentforredressalofproblemsfaced bythe industrialists.
III. SLCStateLevelCommitteehasbeenconstitutedforscrutinizeandsanctionof
incentivestotheindustrialunitsundertheChairmanshipofCommissioner of
Industries, with other departments as members.
IV.
DLCDistrictLevelCommitteehasbeenconstitutedundertheChairmanshipof
Collectorofdistrictconcernedforscrutinize and sanctionof incentives to
units below investment of Rs. 25 lakhs in machinery.
V. SSCStandingScrutinyCommitteehasbeenconstitutedforinspectionandto
verify thegenuinenessofmachinery overandaboveRs.1 croreinthecase of
sanction of incentives.
VIMDCMulti-DisciplinaryCommitteehasbeenconstitutedintheDistrictlevel
forinspectionandtoveritythegenuinenessofmachinery belowRs.1 crorein
sanction of incentives.
VII. IFC: Industries Felicitation Council has been constituted under the
ChairmanshipofCommissionertoclear theinterestondelayedpaymentsto
smallscaleandancillaryindustrialundertakings,bytheindustrialistsorany
other organizations
VIII. DIPC; District Industries Promotion Committee constituted under the
ChairmanshipofDistrict Collector concerned withsome of the
DistrictOfficers to attend the issues of industrial units at district level.
IX. SLSWCC: State Level Single Window Clearance Committee has
been constitutedtocleartheapprovals /clearances of industrial units at
State Level under the Chairmanship of Commissioner of Industries.
X. DLSWCC;theDistrictLevelSingleWindowClearanceCommitteehasbeen
constitutedatDistrictLevelforclearing
theapprovals/clearancesofindustrial units under the Chairmanship of
District Collector.
TheCommitteessofarconstitutedareregularlyconductingthemeetingsandtheminute
s of the meetings are accessible for public.
Section 4 (1)(b)(ix) DirectoryofOfficersandEmployees AND
Section 4 1)(b)(x) Monthly remunerations and pay particulars of the staff ofDirectorate of Industries,
AP, Hyd. as on October 2015.
Sno EMP ID Name of the Employee Designation Basic Pay Pay Scale
1 254354 KartikeyaMirsa Director 22210+6600(GP) 15600-39100
2 2579301 B.SureshBabu Additional Director 115890 66330-108330
3 2514558 M.Sadu Sunder Joint Director 98440 56870-105810
4 1201489 G.SudarshanBabu Joint Director 75150 56870-105810
5 1609368 K.ParadaRao Joint Director 110850 56870-105810
6 2579305 K.VijayaRathnam Deputy Director 75150 46060-98440
7 1403390 B.SrinivasRao Deputy Director 77030 56870-105810
8 2579307 T.Murali Deputy Director 80930 49870-100770
9 300788 T.V.S.PasadaRao Deputy Director 77030 46060-98440
10 1000382 G.Chandrasekar Deputy Director 75150 49870-100770
11 2601896 A.A.L.Padmavathi Deputy Director 75150 49870-100770
12 2514577 G.Naga Raja Rao Assistant Director 67990 40270-93780
13 2596037 J.N.S. Gopal Naidu Assistant Director 67990 40270-93780
14 654635 A.Girishwer Reddy Assistant Director 58330 40270-93780
15 1100912 B.V. Ramana Reddy Assistant Director 67990 40270-93780
16 2514569 B.Harinath Reddy Assistant Director 52590 40270-93780
17 2514737 Y.NagaVeni Assistant Director 64670 40270-93780
18 2514749 R.V Jagadeshwara Reddy Assistant Director 66330 40270-93780
19 2537397 G.RamakrishnaRao Assistant Director 71510 42490-96110
20 2598689 V.LakshmiBindu I.P.O 33220 31460-84970
21 913916 K.NagaSwetha I.P.O 43680 35120-87130
22 2580528 B.SubrahmanyaSarma IPO 59890 29760-80930
23 2580532 P.ChandraKumari I.P.O 44870 29760-80930
24 2580533 V.Ramamani I.P.O 51230 40270-93780
25 2598690 Sowjanya I.P.O LEAVE
26 2598691 M.Madhuri I.P.O 33220 31460-84970
27 2514714 T.Baby S.C. Steno 39160 29760-80930
28 2514719 N.Rajendra Prasad Superintendent 58330 28940-78910
29 2514722 M.SatyaNarayana Superintendent 49870 28940-78910
30 2514732 P.Rajya Lakshmi Superintendent 49870 28940-78910
31 2514734 Mohd.Faizuddin Superintendent 56870 28940-78910
32 2514735 T.V.V.Satyanarayana Superintendent 59890 29760-80930
33 2514746 Y.Samrajya Lakshmi Superintendent 55410 28940-78910
34 2514750 Ch.DanaKumari Superintendent 51230 28940-78910
35 2514756 ShaikHussain Superintendent 38130 28940-78910
36 2514757 B.Suguna Superintendent 56870 29760-80930
37 2514761 Y.V.Chalapathi Reddy Superintendent 56870 29760-80930
38 2514768 P.S.V.N.ManiKumari Superintendent 51230 28940-78910
39 2514771 G.PushpaRao Superintendent 49870 29760-80930
40 2514654 M.Manoharam Superintendent 67990 29760-80930
41 2514711 Ch.Nagabhushanam Superintendent 41380 28940-78910
42 2514773 B.Gopala Krishna Murthy Superintendent 34170 28940-78910
43 2601912 M.Rama Krishna Senior Assistant 28120 23100-67990
44 2514655 Ch.Jaya Kumar Senior Steno 24440 22460-66330
45 2514690 ShaikShashavali Senior Assistant 32340 22460-66330
46 2514692 M.Krishna Prasad Tel. Operator 48600 19500-58330
47 2514693 S.V. Saraswathi Senior Assistant 35120 22460-66330
48 2514697 B.SubbaRao Senior Assistant 26600 22460-66330
49 2514701 S.Mallikarjun Senior Assistant 28120 22460-66330
50 2595573 Jaya Mercy Metilda Junior Assistant 18400 16400-49870
51 2598861 V.Purushotham Junior Assistant 16870 16400-49870
52 2600348 Naga Jyothi Junior Assistant 16870 16400-49870
53 2600353 R.Himabindu Junior Assistant 16870 16400-49870
54 2600354 P.Jagadesh Chandra Babu Junior Assistant 16870 16400-49870
55 2600355 T.Annapurna Junior Assistant 16870 16400-49870
56 2514588 B.Subhash Attender 24440 14600-44870
57 2514589 Ch.Raju Attender 23740 14600-44870
58 2514593 M.Vijaya Lakshmi Record Asst. 19860 15030-46060
59 2514599 S.Raja Lingam Attender 20640 13390-41380
60 2514604 A.ShamRao Attender 17890 13000-40270
61 2514608 Susheel Kumar Attender 24440 14600-44870
62 2514613 S.Sangeeva Attender 24440 14600-44870
63 2514614 Syed Rafeeq Ali Attender 25840 14600-44870
64 2514616 Mohd. Akthar Record .Asst 27360 15030-46060
65 2514620 MohdJahangeer Attender 26600 14600-44870
66 2514622 Mohd Pasha Miay Attender 25140 14600-44870
67 2514630 Mohd Ismail Attender 27360 14600-44870
68 2514635 Kasaiah Attender LEAVE
69 2514638 P.Sivakoti Reddy Attender 25140 14600-44870
70 2514643 NumBahadur Attender 23100 14600-44870
71 2514645 D.Sharavan Kumar Attender 24440 13390-41380
72 2514650 G.Suneetha Attender 25140 14600-44870
73 2514653 BirBahaur Attender 23740 14600-44870
74 2514659 Sardar Khan Attender 26600 13390-41380
75 2514681 Mohd. Badruddin Watchman 27360 14600-44870
76 2578456 Syed Yakoob Ali Sweeper 17380 13000-40270
77 2578466 G.Shobha Rani Attender 17380 13000-40270
78 2578468 A.ChandraSekhar Attender 14170 13000-40270
79 2578469 Y.Gopi Krishna Attender 20050 13390-41380
80 2578471 M.Venkatamma Sweeper 19500 13390-41380
81 2580537 G.Gnaneswar Gardener / Mali / Malan 42490 14600-44870
82 2593604 B.Naresh Attender 14600 13000-40270
83 2607234 Jagannadham Attender LEAVE
84 2568559 NV Phaneendrudu Accounts Officer 66330 40270-93780
85 2548725 N.RamachandraRaju AAO 48600 35120-87130
86 2544661 B.SrinivasaRao JAO 36070 28940-78910
87 2567006 B.Shirisha JAO 34170 28940-78910
88 2568638 P.Sujani JAO 34170 28940-78910
89 2578460 V.Naga Siva Ram JAO 41380 28940-78910
90 616650 Syed Rijwana Begum Senior Accountant 28120 28940-78910
91 2509288 K.Rukmini Devi Senior Accountant 25840 22460-66330
92 2544679 Y.Krishnudu Senior Accountant 27360 22460-66330
93 2567012 E.Sandhya Senior Accountant 25840 22460-66330
94 2568635 MeeraValishaik Senior Accountant 30580 22460-66330
95 2575716 B.JayaramNaik Senior Accountant 24440 22460-66330
96 2575614 V.Srikanth Junior Accountant 21230 16400-49870
97 2514674 SSN Sastry Typist 51230 17890-53950
98 2575616 P.ShamRao Office Subordinate 16400 13000-40270
99 2514675 Krishna Veni Office Subordinate 36070 15030-46060
ChapterXI The Budget allocated to each of its agency, indicating the particularsofallPlans,proposedexpenditures andreportson disbursementsmade.
BUDGET DETAILS FOR THE YEAR 2015-16
Rs. In lakhs
S.No HEAD Scheme B.E. 2015-
16 1st quarter 2nd quarter
3rd quarter
4th quarter
Total
For three quarters
ending of Dec,2015
Amounts drawn for
2015-16
Actual expenditure
1 2851-102-11-45-310/312 ISO 9000 certification 1.00 0.00 0.50 0.25 0.25 1.00 0.75 0.00 2 2851-102-11-46-310/312 Technology
Development 1.00 0.00 0.50 0.25 0.25 1.00 0.75 0.00
3 2851-102-11-49-310/312 Awards to SSI units for
Productivity, Innovation and Safety
100.00 0.00 50.00 25.00 25.00 100.00 75.00 0.00
4 2851-102-11-52-270/272 Reconstruction of DIC Buildings *** Not covered in CBRO - budget utilized through works department demand to be upload to work dept. site
4000.00 119.00 0.00 0.00 0.00 0.00 119.00 The Amount
to be transfer to
works dept / APIIC
119.00 released to DIC building repairs to 3 districts, the amount not yet incurred
5 2851-789-11-17-310/312 Incentives for Industrial Promotioin for SC under SCSP
1500.00 375.00 375.00 375.00 375.00 1500.00 1125.00 375.00
6 2851-800-11-09-310/312 Development of
Clusters in Tiny Sector 800.00 0.00 300.00 250.00 250.00 800.00 550.00 0.00
7 2852-80-11-07-520/521 Automation and Modernization of Head Office
500.00 125.00 125.00 125.00 125.00 500.00 375.00 64.63 64.33
8 2852-80-789-11-04-310/312
Incentives for Industrial Promotioin for SC under SCSP
24249.85 6062.46 6062.46 6062.46 6062.46 24249.84 18187.38 6062.46 1130.50
9 2852-80-796-11-04-310-312
Incentives for Industrial Promotioin for ST under TSP
2232.00 558.00 558.00 558.00 558.00 2232.00 1674.00 558.00
300.75 10 2852-800-11-04- Incentives for Industrial
Promotion 0.00
a 2852-800-11-04-160 Publicatons 1500.00 375.00 375.00 375.00 375.00 1500.00 1125.00 375.00
b 2852-800-11-04-260 Advertisements, Sales and Publicity Expenses
6000.00 1500.00 1000.00 1750.00 1750.00 6000.00 4250.00 1500.00
602.87 c 2852-800-11-04-280/284 Professional Services/
Other payments 1500.00 375.00 375.00 375.00 375.00 1500.00 1125.00 375.00
d 2852-800-11-04-310/312 Incentives for Industrial
Promotion 129.65 32.41 32.41 32.41 32.41 129.64 97.23 64.82
11 2875-60--190-11-08-
310/312 Land Acquisition for Govt. of India undertakings
1.00 0.00 0.50 0.25 0.25 1.00 0.75 0.00
12 4860-03-789-11-05-540 Investment in LIDCAP -
Capital Head - Not covered in CBRO
570.00 1425.00 0.00 0.00 0.00 1425.00 1425.00 1425.00
13 4875-60-800-11-05-540 10000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
TOTAL BUDGET ESTIMATES FOR 2015-16 53084.5 10946.87 9254.37 9928.62 9928.62 40058.48 30129.86 69170.09 90045.58
[Rupees in Lakhs]
Scheme Head wise between 01-04-2015 and 29-12-2015
Scheme : Normal State Plan
Sr.No Departm
ent Sub Head Accounts
12-13 Accounts
13-14
Accounts 14-15
BE 2015-16
BE After
BRO Issued
Expenditure
Apr-May
June-March Re-App
Current Year A.G.
Last Year
1
INDUSTRIES, HOD 01-Head Quarters Office 2,29.88 0 0 0 0 0 0 0 0 0
2 04-Incentives for Industrial Promotion 33,31.16 41,27.75 9,39.49 130,52.70 356,11.50 356,11.50 89,02.87 89,35.28 89,35.28 48,82.19
3 04-Investments in LIDCAP 5,00.00 5,00.00 83 72.9 5,70.00 5,70.00 1,42.50 1,42.50 1,42.50 83
4
05-Construction of New Buildings for Commissioner of Industries Office 0 0 0 0 0 0 0 0 0 0
5 05-Venture Capital 0 0 0 0 100,00.00 100,00.00 0 0 0 0
6 07-Automation and Modernisation of Commissionerate of Industries 3.75 9.1 2.9 0 5,00.00 5,00.00 1,25.00 64.63 3.12 2.9
7 07-Power Subsidy for Industries 0 0 0 0 0 0 0 0 0 0
8
08-Extension of Pavalavaddi Scheme to all SSI and Food Processing Units 0 0 0 0 0 0 0 0 0 0
9 08-Incentives for Industrial Promotion 208,39.00 281,83.00 51,47.15 -51,47.15 0 0 0 0 0 96,49.89
10 08-Land Acquisition for Government of India Undertaking 0 22.22 0 0 1 1 0.25 0 0 0
11 08-S.S.I. Clusters under Critical Infrastructure Balancing Scheme 0 0 0 0 0 0 0 0 0 0
12 09-Development of Clusters in Tiny Sector 0 50 0 0 8,00.00 8,00.00 2,00.00 0 0 0
13 10-Establishment of District Industries Centres 2,40.47 0 0 0 0 0 0 0 0 0
14 13-Power Subsidy for Industries 190,77.50 131,00.00 22,34.99 -22,34.99 0 0 0 0 0 324,40.16
15
14-Extension of Pavalavaddi Scheme to all SSI and Food Processing units 13,65.00 26,25.00 4,54.99 -4,54.99 0 0 0 0 0 20,53.01
16
17-Incentives to the S.C. Entrepreneurs for Industrial Promotion 3,00.00 4,50.00 1,00.00 87.48 15,00.00 15,00.00 3,75.00 3,75.00 3,75.00 1,87.48
17
45-Grants from State Government to SSI Units for ISO-9000 Certification 0.25 0 0 0 1 1 0.25 0 0 0
18 46-Technology Development Fund 0 0 0 0 1 1 0.25 0 0 0
19
49-Awards to SSI Units for Productivity, Innovations and Safety 0.25 11.25 0 0 1,00.00 1,00.00 25 0 0 0
20 52-Reconstruction of DIC Buildings 3.16 6.75 0 11.51 40,00.00 40,00.00 10,00.00 0 0 11.35
21
54-Setting up of Bio-technology Park near Hyderabad for Small Scale Units under approach 0 0 0 0 0 0 0 0 0 0
Total 458,90.42 490,85.07 89,62.52 53,87.46 530,84.50 530,84.50 107,71.12 95,17.41 94,55.90 493,09.98
Grand Total 458,90.42 490,85.07 89,62.52 53,87.46 530,84.50 530,84.50 107,71.12 95,17.41 94,55.90 493,09.98
Section 4 (1)(b)(xii)
Themannerofexecutionofsubsidyprogrammes, including theamountsallocatedandthedetailsofbeneficiariesof suchprogrammes.
IDP2010-15:As mentioned inSection 4 (1)(b) (iii) and Section 4 (1)(b) (iv)
Section 4 (1)(b)XIII
Particularsofrecipientsofconcessions,permitsor authorisationsgrantedbyit:
TheDepartmentofIndustriessanctionedseveralincentivesto the Industrial UnitsingeneralandalsoforSC/STbeneficiariessince inception of the Distr ict Industries Centers.This department has also implemented other schemes like Margin money loans, Self employment schemes, Marketing assistance,Allotting Scarce Raw materials etc. for which specific information is being provided to the applicants under the RTI Act whenever the request is received by this office.
SECTION 4(1)(b) xiv
Informationavailableintheelectronicform
Electronic format Description
(site address/locationwhere available etc.)
Contents ortitle
Designation and address of the custodian
of Information (held bywhom)
UdyogAadhar Memorandum Part-2 Website Downloads www.apindustries.gov.in www.udyogaadhar.gov.in
Allotment ofscarceraw material Website Downloads www.apindustries.gov.in
IncentiveClaimApplication Website Downloads www.apindustries.gov.in Single DeskClearanceApplications Website Downloads www.apindustries.gov.in
IEM Application Website Downloads www.ebiz.gov.in
ILApplication Website Downloads www.ebiz.gov.in Keycontacts Website Downloads www.apindustries.gov.in
IDP2010-2015 Website Downloads www.apindustries.gov.in
Food ProcessingPolicy Website Downloads www.apindustries.gov.in
Directory of MSMEUnits Entrepreneurs Guidance Cell, O/o Director of Industries, Chirag-Ali-Lane, Hyderabad-500001.(A.P.)
Directory of Large &Mega Industries Entrepreneurs Guidance Cell, O/o Director of Industries, Chirag-Ali-Lane, Hyderabad-500001.(A.P.)www.apindustries.gov.in
SECTION 4(1)(b) xv
Particularsoffacilitiesavailabletocitizensforobtaining informationincluding theworkinghoursofalibraryorinformationcenterorreadingroommaintainedfor publicuse.
1. EntrepreneursGuidanceCell:
Technically qualifiedofficerswillprovideInformationonprojectideas,infrastructural facilities,policiesof State andCentralGovernments,sourcesof rawmaterials,machinery suppliersandtheinformationontechnologysourceswillbeprovidedtotheentrepreneurs for settingup of industrial ventures in the State.
2. Library:
ThePotentialProjectprofilesare available in the library. Date pertaining to existing industrial units and the units proposed is beingcompiled and continuously updatedfortheuseofentrepreneurs/traders. Books relatingtotaxation, technicaldata,directoriesofimporters &exporters,journalsandotherusefulliterature are also available for the entrepreneurs.
The workinghours are 10.30 A.M. to 5.00 P.M.
Section 4 (1) b–XVI
Name,Designation&otherparticularsofAppellateAuthority/PublicInformationOfficer(s)/ AssistantPublicInformationOfficer(s)underRIGHTTO INFORMATIONACT,2005.
Name of the Public Information Officer: Sri B.SureshBabu, Additional Director
Name of the Assistant Public Information Officer: Sri K.PrasadaRao, Joint Director
Name of the Appellate Authority: Sri KartikeyaMisra IAS Director of Industries
Section4(1)(b)xvii
OtherUsefulInformation
Publications which are of relevance orofuseto theCitizens.
To promote Andhra Pradesh as an attractive and competitive destination for industrial investments, the State Government have offered various incentives/benefits to all eligible new industrial enterprises set up in the State. Projects involving Expansion/Diversification of existing industries other than those specified in Annexure-I are also entitled for benefits offered under the policies mentioned below: a) Industrial Development Policy 2015-2020 b) Automobile & Automobile Components Policy 2015-2020 c) Textile & Apparel Policy 2015-2020 d) Biotechnology Policy-2015-2020 e) MSME Policy 2015-2020 f) Aerospace &Defence Manufacturing Policy 2015-2020
Sd/ B.SURESH BABU Additional Director/PIO
O/o Director of Industries Place:Hyderabad Date:.12.2015 .
